ArcelorMittal looks to set up Rs 20K cr plant in Karnataka

World’s biggest steel producer ArcelorMittal today announced setting up of another integrated plant in iron-ore-rich Karnataka,thereby taking its total investment in the country to more than Rs 1,00,000 crore.

While projects of global steel tycoon L N Mittal’s company lie stuck in various regulatory and other bottlenecks,besides being hit by tardy progress in land acquisition in Orissa and Jharkhand,ArcelorMittal approached the Karnataka government on Saturday last seeking its nod to set up a steel plant. The plant is estimated to have a production capacity of 6 million tonnes). Though the company’s spokesman did not specify where and when the plant would be set up,informed sources said Bellary district could be the location and that the company was planning to invest about Rs 20,000 crore for the project. The spokesman maintained that none of the existing proposed projects are being relocated. The company’s decision to propose another project in Karnataka comes even as its existing projects are yet to gather steam. ArcelorMittal had already threatened to relocate its projects,forcing the steel ministry to initiate consultations with the company and state governments to expedite projects.

According to a statement from ArcelorMittal the company’s proposed project would depend on a host of techno-economic factors. It has initiated a techno-economic feasibility and details pertaining to cost,capacity,timeline,etc,would be known after its completion in 3-4 months. Going by its plans to invest about Rs 80,000 crore for the two proposed projects totaling 12 million tonne,together with Karnataka project,the proposed investment would be well over Rs 1,00,000 crore.