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Updated: July 18, 2013 17:29 IST

Won’t be affected by ArcelorMittal’s withdrawal: Odisha

PTI
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ArcelorMittal steel workers wait outside the regional headquarters in Flemalle, Belgium. The Odisha Government on Thursday said that ArcelorMittal’s decision to back out of its proposed mega steel project in Keonjhar district would have no impact on the ongoing industrialisation in the state. File photo
AP ArcelorMittal steel workers wait outside the regional headquarters in Flemalle, Belgium. The Odisha Government on Thursday said that ArcelorMittal’s decision to back out of its proposed mega steel project in Keonjhar district would have no impact on the ongoing industrialisation in the state. File photo

ArcelorMittal’s decision to back out of its proposed mega steel project in Keonjhar district would have no impact on the ongoing industrialisation in the state, Odisha government said on Thursday.

“ArcelorMittal’s pull out from the proposed steel plant at Patna in Keonjhar district will not have any impact on other industrial projects which are operational or in the pipeline in the state,” chief secretary Jugal Kishore Mohapatra told reporters in Bhubaneswar.

Mr. Mohapatra’s statement came a day after a senior executive of ArcelorMittal met and told him about the company’s decision not to go ahead with its planned construction of an integrated steel and captive power plant in Keonjhar.

“Since ArcelorMittal has officially intimated us (about) not renewing the memorandum of understanding (MoU), the chapter between the government and ArcelorMittal is closed for the time being,” Mr. Mohapatra said.

Mr. Mohapatra pointed out that the state government could not recommend mining lease in favour of ArcelorMittal as the project had failed to make the required progress which would have made it eligible to obtain raw material linkage.

Asked whether the state government would request the company to reconsider its decision, Mr. Mohapatra said: “No, not for the time being. If the company comes with any proposal in future, we will consider.”

ArcelorMittal has also failed to submit its detailed project report, pointed out a senior official in the state government’s steel and mines department.

The world’s largest steel maker had in 2006 signed an MoU with Odisha government to set up a 12-million tonne steel plant in four phases at Keonjhar, entailing an investment of $12 billion (Rs 50,000cr).

That MoU had lapsed since December 2011.

Typical government attitude? Industry come or not...who cares?

from:  s.jacob
Posted on: Jul 18, 2013 at 18:41 IST

This is a one-sided news report. What did Accelor have to say regarding
their reasons for pulling out?

from:  Rahul
Posted on: Jul 18, 2013 at 18:34 IST

This is happened due to lack of govt decision in Odisha.

from:  litu
Posted on: Jul 18, 2013 at 18:29 IST

Mittal did right think. After Nano exit from west Begal , move to invest in India is highly risky and uncertain !!!

from:  Navin
Posted on: Jul 18, 2013 at 18:09 IST

These steel plants were proposed only on paper without any commitment. They were proposed as India inexplicably were giving free iron ore mines for setting up steel plants, which is not the practice anywhere in the world. Since the SC has later clarified on allocation of natural resources, that it should ensure the best use to the public, auction of iron ore mines has become the favoured method of allocation of mines. Without free mines, these proposed steel plants which had seen no investment on the ground are now officially being withdrawn.

from:  Raj
Posted on: Jul 18, 2013 at 17:40 IST
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