Arcelor-Mittal scouts for land in Dharwad, India

30 June 2015

Arcelor-Mittal is proposing to establish a steel plant in Dharwad for an investment of Rs 5,000 crore and it is said to be looking for a suitable land. Representatives of the Roland Berger Strategy Consultants Private Limited, the technical adviser to Arcelor-Mittal, are expected to visit the twin cities by this month-end, to take stock of the land available here for the establishment of a proposed steel plant.

President of Karnataka Chamber of Commerce & Industry (KCCI), Hubballi, Vasanth Ladawa said that the proposed automotive HS (high speed) steel plant with 1.5 million tonnes per annum production capacity for which Arcelor-Mittal would invest Rs 5,000 crore. It would create direct and indirect jobs for 15,000 families, and it would offer technologically-advanced steel products for the automotive sector.

Nearly 300 acres of a dimension of 1.3 km x 07 km is required for the plant. Hubballi-Dharwad is the most suitable place for this plant, he said.

The KCCI has already informed Roland Berger about the availability of land at KIADB industrial area at Mummigatti near Dharwad and Gamanagatti Industrial Area second stage near Hubballi. "Chief Minister Siddaramaiah has also given positive response about facilitating the establishment of Arcelor-Mittal plant near the twin cities, and District In-charge Minister Dinesh Gundu Rao has called us for a discussion in this regard in Belagavi. By offering attractive incentives, the government should ensure the establishment of the plant in North Karnataka region itself, as there is also a possibility of attracting the plant towards South Karnataka region," Ladawa said.

It may be recalled here that due to lack of initiative from the state government Hero Motocorp which had shown interest in setting up its unit in Dharwad backed out and shifted to Andhra Pradesh. Tata Motors which wanted to set up its unit in Dharwad decided to set up the unit in Gujarat as Karnataka government failed to provide the necessary infrastructure.

“Such incidents should not repeat for which political will has to be shown. The KCCI office-bearers would meet all legislators of the region to ensure the establishment of the proposed steel plant here, and officials and politicians would be asked to be present when Roland Berger team visits the twin cities” Ladawa said.

Laxmi Mittal, Chairman of Arcelor-Mittal Company has signed an agreement with Steel Authority of India in London on May 22, 2015 regarding setting up of a ‘Cold Rolling Mill Downstream Finishing Facility’ unit at a cost of Rs 5,000 crore. Laxmi Mittal has signed on behalf of Arcelor Mittal while chairman of SAIL P S Sharma and representative of Union Ministry of Steel Rakesh Singh have signed on behalf of SAIL.

Arcelor Mittal aims to set up the unit to cater to the automotive sector’s steel requirement.

KIADB has land for industrial purpose at Mummigatti on Dharwad-Belagavi road and Gamanagatti near Hubballi. Arcelor Mittal has asked Roland Berger, a global technical advisor to examine the land and other facilities being offered at Dharwad-Hubballi. The Roland Berger team is expected to visit Dharwad in the first week of July.

The mega steel plant to be set up at Ballari by Arcelor Mittal and it has nothing to do with the unit proposed to be set up at Dharwad. The steel giant is in the process of setting up a 5 million tonne capacity plant at an investment of Rs 30,000 crore in Ballari.