ArcelorMittal struggles for land in India for its proposed steel plants

Monday, 05 October 2009 14:55:34 (GMT+2)

The world's largest steel maker ArcelorMittal is threatening to cancel its $20 billion project to build two major steel plants in Orissa and Jharkhand, in eastern India due to problems concerning land acquisition, reports say.

As SteelOrbis previously reported, ArcelorMittal signed a memorandum of understanding with the Jharkhand government in 2005 for setting up a 12-million-mt greenfield project. A year later, it proposed a plant of similar capacity in Orissa.

Since the beginning of the project, ArcelorMittal is facing problems acquiring the land for the plants, although the local governments has plotted the lands. Since the lands in question are currently used for farming, farmers are unwilling to sell these lands for industrial use.

"If we cannot make progress in these two sites, we will have to abandon the idea of starting the projects there and look for other places in India for our expansion," Lakshmi Mittal, the owner of ArcelorMittal told the press.

Meanwhile, Orissa Chief Minister Naveen Patnaik said, "This is surprising as we have not received any communication so far from ArcelorMittal to move out from their proposed steel project here. On the contrary, we have been trying our best to facilitate the project."

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