ArcelorMittal’s third steel plant will be in Karnataka

Mangalore Today

New Delhi, Jan 7 : Global steel giant ArcelorMittal will set up its third steel plant in India in Karnataka, even as the company’s chairman expressed disappointment over the slow response on the other two plants from the centre and some state governments.

 

"We haven’t signed a memorandum of understanding yet. We are still evaluating. The Karnataka government seems quite enthusiastic," ArcelorMittal chairman L.N. Mittal told reporters here Thursday after a meeting with Karnataka Chief Minister B.S. Yeddyurappa.

The company is planning to invest Rs.30,000 crore ($6 billion) on the six million tonnes a year capacity plant that will also have a captive power plant.

"The Mittals have come forward to set up a mega steel plant in Karnataka with investment of Rs.30,000 crore with potential for direct employment to 10,000 people. I have cleared the project in principle and hope to sign a memorandum of understanding in 90 days," the chief minsiter said.

Both Mittal and Yeddyurappa are attending the three-day annual Pravasi Bharatiya Divas, India’s annual connect with its diaspora, that began here Thursday.

The steel tycoon, however, clearly expressed his dissatisfaction over the progress of the proposed steel plants in Jharkhand and Orissa, where ArcelorMittal plans to build a 12-million tonne factory each at a cost of about Rs.100,000 crore.

"We are not satisfied with the progress made in Jharkhand and Orissa. We hope that we can make more progress than what we have achieved so far. But we don’t plan to exit from any of our projects," Mittal pointed out.

Karnataka, meanwhile, has invited Mittal to be the chief guest at the state’s inaugural global investors’ meet June 3-4 in Bangalore to make the it one of India’s best developed states.