ArcellorMittal, which has proposed to set up a 12-million-tonne steel project in Odisha’s Keonjhar district with an investment Rs40,000 crore, appears to have developed cold feet about the project.
Sources in the State Government, who know of the progress of the mega project, say the global steel major is not taking any interest in the project. They point out that neither is ArcelorMittal responding to the letters of the Government nor are its officials pursuing the project.
“Ever since the MoU with ArcellorMittal expired on December 20, 2011, the Government has made all-out efforts to keep in touch with the company,” said Minister for Steel & Mines Rajani Kanta Singh.A senior official of the department revealed that the Government has written to ArcellorMittal three times but has not received any reply.
The department first wrote a letter in January 2013 asking the company to furnish a report on physical and financial progress up to December 31, 2012 and then followed it up with reminders on February 3, 2013 and March 11, 2013.
“The department has taken a serious view of the company’s failure to submit the physical and financial progress report despite several reminders,” he said.Though the company had filed a formal proposal for renewal of the MoU, unlike Posco India, it is not pursuing the matter with the Government, the official added.
Many companies which have signed MoUs with the Government for setting up industries have become indifferent towards the projects after the Government recently decided not to promise captive mines to them at the time of renewal of their MoUs, sources said.ArcelorMittal Group Chairman lN Mittal recently expressed his displeasure over the delay in setting up its projects, stating, "It is not easy to do business in India." He also said that the downturn in the global steel market has compelled the company to withhold investment decisions.
Earlier Mittal had threatened to withdraw from the project complaining about the inordinate delay in land acquisition and the indecision regarding captive mines. It may be noted that while the company had been allocated a coalmine for the project, six applications filed by it for grant of captive iron ore mines are pending at various levels in the Government.
At ground zero, the villagers facing displacement due to ArcellorMittal’s project are demanding a complete withdrawal of the project. Though the land acquisition process has started, the Government is yet to take possession of the land. “So far, no land has been acquired for the project in Patna tehsil of Keonjhar district,” said Steel and Mines Minister Singh.The company has sought 7,003 acres of land for the project and 750.58 acres for the plant township in Patna tehsil.