Arcelor Mittal to sign MoU with Orissa Govt

BHUBANESWAR: Arcelor-Mittal, the world's biggest steelmaker, signed a memorandum of understanding with the Orissa government for establishing a 12 million tonne steel project in the state.

The High Level Clearance Authority (HLCA) on Wednesday approved the Arcelor Mittal proposal to establish the Rs 40,000 crore plant in two phases, paving the way for signing the MoU, official sources said.

The project, of the same size as South Korean steel major Posco's proposed plant near Paradip, would be located in the Patna tehsil of tribal-dominated Keonjhar district.

In the first phase, the company would invest Rs 22,000 crore for a six million tonne capacity and a 750 MW captive power plant.

The company had asked for 8,000 acres of land for the project of which 1000 acres each would be earmarked for the power project and the township.

The project would draw water from the Baitarani river and the raw material linkage had been assured, the sources said.

The joint working group comprising officials of Mittal Steel India Ltd and the state government gave final shape to the project proposal at a meeting here recently.