Posco, ArcelorMittal ask govt to remove hurdles

New Delhi, July 22: Foreign steel giants Posco and ArcelorMittal have asked the Government to intervene and remove the roadblocks to their investment plans totalling a mammoth Rs 1,35,000 crore. They want the government to expedite allocation of captive iron ore mines and streamline land acquisition at their project sites in Jharkhand and Orissa, respectively.

At a meeting convened by the Steel Ministry today to take stock of the projects being executed by the domestic and foreign steel companies in India, the top brass of South Korea’s Pohang Steel Company (Posco) and LN Mittal-promoted ArcelorMittal told ministry officials that irritants impeding fructification of their projects needed to be removed through express intervention.

ArcelorMittal has asked the ministry to talk to the Orissa government in expediting holding of Gram Sabhas at their site in Keonjhar district of the coastal state. Besides, they are also concerned that recommendation of Prospecting Licence for captive mines is yet to happen, informed sources said.

ArcelorMittal has proposed to invest around Rs 80,000 crore to build one steel plant each in Jharkhand and Orissa. Though the company has made reasonable headway in mining matters with the Centre okaying allocation of mining rights to it on 500 acres of land in Megahataburu area of the tribal-dominated Jharkhand, yet In Orissa there is no such progress, triggering concerns among the company’s top brass in the country.

On the land acquisition issue, ArcelorMittal is expecting to break ground early next year and thereafter complete its first phase within two years. It has sought about 7,750 acres of land for the Keonjhar plant and has already deposited fees for the purpose, sources said.

Similarly, Posco has its own set of problems. The Korean steel giant is yet to get the Naveen Patnaik government’s recommendation on allocating mining lease to the company for the Khandadhar mines. “The two main issues pertaining to Posco India project are forest diversion clearance which is pending in Supreme Court and recommendation by the state government for grant of prospecting licence for mines. The third issue that we raised during the meeting was law and order situation at the site area should be given a serious look,” Posco India General Manager Vikas Sharan said.

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