ArcelorMittal, Karnataka to sign steel plant deal

The Karnataka government said on Thursday it would sign an agreement with No 1 global steelmaker ArcelorMittal in June for the company to build a 6 million tonne steel plant.                                           

ArcelorMittal plans to invest Rs300 billion ($6.6 billion) in the project, which will also have a captive power plant with capacity of 750 megawatts, the government said in a statement.                                           

The company aims to acquire 4,000 acres of land for the plant.                                           

The project will be in addition to ArcelorMittal's plans to build steel plants in the eastern Indian states of Orissa and Jharkhand.                                           

The company has faced delays for its $20 billion plan to build the Jharkhand and Orissa plants, which would give it a presence in one of the few steel markets in the world still seeing demand growth.                                           

In September last year, ArcelorMittal said it would acquire a one-third stake in Indian re-roller Uttam Galva, making its first investment in the country.