Jharkhand considering MoU renewal for ArcelorMittal steel plant

Ranchi, Aug 1 (IANS) Jharkhand is considering a request by steel major ArcelorMittal for renewal of its MoU to set up a 12 million tonne greenfield steel plant in the state, an official said here Wednesday

"ArcelorMittal has requested to renew the MoU for setting up a steel plant. The request is under consideration of the state government," A.P. Singh, Jharkhand industries secretary, told IANS.

"The local representatives first requested for land, and the Land and Revenue Secretary has written to the Bokaro district administration in May this year for land."

ArcelorMittal had signed an MoU with the Jharkhand government in 2005 for setting up a 12 million tonne greenfield steel plant with an investment of Rs.40,000 crore.

The project, however, could not take off owing to land acquisition problems. ArcelorMittal has already been allocated coal blocks and iron ore mines.

According to sources, the company will set up a 3 million tonne steel plant in the first phase and later expand capacity to 12 million tonnes.

Company chairman L.N. Mittal had recently expressed unhappiness over the poor progress of the project. Asked about Mittal's observations, the Jharkhand industries secretary refused to comment.

"Mittal Steel has started the process for mining of coal and iron ore. Jharkhand government will extend all possible help to the company to set up the plant in the state", Singh said.

The company initially planned to set up the plant in the area bordering Khuti and Gumla districts, but land acquisition problems here have forced it to look to the Bokaro area.