Mittal Steel chief L N Mittal said the total investment in the steel plant could be of the order of Rs 30,000 to Rs 40,000 crore.
BHUBANESHWAR: Unhappy over the progress of its mega steel project in Jharkhand, steel tycoon Lakshmi Niwas Mittal on Friday announced an investment of up to Rs 40,000 crore for setting up a 12-million-tonne project in Orissa.
Fresh from his successful acquisition of European steel giant Arcelor, Mittal began his day-long India visit from Orissa and announced his investment plans immediately after meeting state Chief Minister Naveen Patnaik.
On Jharkhand, where his company has sought a Letter of Comfort from the state government to identify iron ore mines, Mittal told reporters: "Though the Jharkhand government is cooperating, we are not happy with the progress there.
"We are weighing our options in Orissa. We want to move fast," he said. Immediately after acquisition of Luxembourg-based Arcelor, Mittal had announced that his focus would be India and China for expansion.
Mittal said that the total investment in the Orissa plant, which would be built in two phases of six million tonnes each, could be of the tune of Rs 30,000 to Rs 40,000 crore.
"The state (Orissa) government had made a presentation of what Orissa can offer. I am really charmed. I want to invest here," the India-born entrepreneur said, adding that he wanted a long term relationship with India and China.
When asked whether the Orissa plant would precede the Jharkhand plant, he said: "Wherever things move faster, we will start there."
Mittal had last October announced that he would invest over Rs 40,000 crore on a mega steel project in Jharkhand.
If he enters Orissa, Mittal would be competing with South Korea's Posco, the world's fourth largest steelmaker, which has already announced a Rs 54,000-crore steel plant in the state -- home to a quarter of India's iron ore reserves.
Chief Minister Naveen Patnaik he was "very positive about Mittal's proposal. I am sure it would come up. It will be of tremendous benefit to the state."
He said the state would constitute an empowered group to facilitate Mittal's project, the agreement for which is expected to be signed soon.
Chief Minister Navin Patnaik denied that Posco was facing problems in connection with iron ore mines.
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