ArcelorMittal, Posco shifting to Karnataka
07 Jan 2010
Stung by long delays and unending protests in India's mine capital Orissa, steel majors ArcelorMittal and South Korea's Posco have shifted projects, albeit temporarily, to Karnataka. The two are expected to sign agreements with the Karnataka government to build steel plants of 6 million tonne capacity each soon.
ArcelorMittal, the world's largest steelmaker, plans to invest Rs30,000 crore ($6.6 billion) in the project, which will include a 750 MW captive power plant, the state government said in a statement.
The government said South Korea's Posco, the world's No 4 steelmaker, also has agreed to invest around Rs32,300 crore ($7.1 billion) in the state to build a 6 million tonne steel plant.
ArcelorMittal aims to acquire 4,000 acres of land for the plant and the government said it would sign an agreement with the No 1 global steelmaker in June.
ArcelorMitta's Indian unit has sought approval from the Karnataka government for setting up a steel plant, which, it said, would be in addition to its planned projects in Orissa and Jharkhand.
The $20 billion plan for setting up steel plants in Jharkhand and Orissa has been facing delays ever since the proposal stage.