Arcelor-Mittal, Orissa ink 12MT plant deal

Arcelor-Mittal has signed a memorandum of understanding (MoU) with the Orissa government for a 12 million tonne steel plant.

The company will invest $9 billion to build the plant in the Patna tehsil of tribal-dominated Keonjhar district.

Updated at 1300 hrs: Arcelor-Mittal, Orissa to ink 12MT plant deal

Arcelor-Mittal, the world's biggest steelmaker, is expected to sign an MoU with the Orissa government later today for setting up a 12 million tonne steel plant in the state.

The high level clearance authority (HLCA) last night 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 6 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 and the state government gave final shape to the project proposal at a meeting here recently.