ArcelorMittal completes feasibility study for Karnataka steel plant
27 February 2015
ArcelorMittal has completed a draft feasibility report for the proposed steel plant in Karnataka.The company in its annual report for 2014, filed with the US Securities and Exchange Commission, said after the completion of the draft feasibility report, hydrological and environmental impact assessment studies have been initiated.
So far, the company has completed all the necessary steps to acquire the land. ArcelorMittal India Ltd received possession certificates for 2,659 acres of private land following the acquisition of 1,827 acres and 832 acres in December 2011 and October 2012, respectively.
The remaining 136.33 acres owned by Karnataka government is being processed for allocation, expected to be completed during the first-quarter of 2015, will be handed over to the company.
Investing in India
The company said investment in Karnataka comes while exploring other investment opportunities in India and in June 2010 it signed an MoU with authorities in Karnataka.
ArcelorMittal plans to construct a six-million tonne steel plant with a captive 750 MW power plant at an investment of about $6.5 billion.
In accordance with the plan, the company has completed fencing the land allotted for the project.
The Karnataka government has also approved the project’s use of water from the Tungabhadra River.
The company had applied for mining leases. But following a recent Supreme Court order relating to illegal mining in Karnataka, and the new mining legislation proposed by the Centre, the allocation of new mining leases in Karnataka has been put on hold. A plan for e-auction of mining leases is under consideration.