ArcelorMittal says Odisha may decide on renewal of pact by Nov
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ArcelorMittal says Odisha may decide on renewal of pact by Nov

Last Updated: Monday, February 18, 2013, 18:06
 
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ArcelorMittal says Odisha may decide on renewal of pact by Nov
New Delhi: World's largest steel maker ArcelorMittal has said the Odisha government is likely to take a call by November this year on renewal of pact for its USD 12 billion steel mill in the state.

"The Odisha Government is considering the company?s application for renewal, which is likely to be decided in the next six to nine months," the global steel giant said in a report.

ArcelorMittal's memorandum of understanding (MoU) with the Odisha government for 12 million tonne per annum (MTPA) steel plant in the state expired on December 31, 2011 and is pending for renewal.

"Concerning the Odisha project, the company is seeking to extend the memorandum of understanding with the Odisha government, which became eligible for renewal on December 31, 2011," the report said.

It has entered into a pact with the state government in 2006 for setting up a mega steel project in the state.

Implementation of the project was delayed "for various reasons, including because of challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals, and the fact that, in the meantime, the Company had explored alternative investment opportunities", the report said.

ArcelorMittal, which also has plans to build another 12 MTPA integrated mill in Jharkhand and had entered into a pact with state government in 2005, could not make much progress there.

It the meanwhile, it had entered into a pact with Karnataka government in June 2010 for 6 MTPA plant there at a cost of USD 6.5 billion.

However, the Luxembourg-headquartered company has not been able to make much headway in USD 30 billion (over Rs 1.3 lakh crore) India projects, marred by problems like opposition to land acquisition, regulatory delays and linkages for iron ore, a key steel-making material.

In May last year, ArcelorMittal Chief Lakshmi N Mittal had said India plans might not materialise for "5 to 10 years".

PTI



First Published: Monday, February 18, 2013, 18:06


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