Grateful Mittal opens purse

Orissa steel Project Rs 40,000-50,000cr; Nigeria project, with OVL $6 bn.

Mittal Steel Chairman L N Mittal, seemingly on a thanksgiving mission to India after clinching a deal to merge with rival Arcelor, today announced a 12-million-tonne steel project worth Rs 40,000 crore in Orissa, and a $6-billion investment plan with state-owned ONGC Videsh in Nigeria.

However, his project in Jharkhand, announced last October, may be in jeopardy. Mittal said he was unhappy with its progress, adding that his company would invest a total of Rs 40,000 crore in India over the next 5-7 years.

A statement from Mittal Steel said, "...there have been unexpected delays in the development of Mittal Steel's proposed 12-million-tonne greenfield steel-making and mining plant (in Jharkhand). As such, the company is exploring other potential opportunities."

In response, an unperturbed Arjun Munda, the Jharkhand chief minister, said India would need a lot more steel plants.

"What is the problem if Mittal Steel sets up a plant in Orissa...? Mine allocation will happen after we work out a rehabilitation policy," he said. Allocation of iron ore mines has been the bone of contention in Mittal's Jharkhand project.

The ONGC-Mittal combine will invest more than $6 billion in setting up a refinery, power plant, and railway lines in Nigeria.

Interestingly, while Mittal said he was "open to acquisition" in India, his son Aditya, Mittal Steel's chief financial officer, said: "Takeover candidates (in India) are far less and limited. I don't expect any fireworks, at least this year."

Mittal said he was left wondering why the Tata Group "" which is increasing its holding in Tata Steel to ward off any take-over threat "" should feel vulnerable.

Tata, also the head of the Investment Commission, said today he would be happy to resolve any issues that Mittal might face. In response, Mittal said: "We welcome all the help we can get."

Mittal flew straight from London to Bhubaneswar today, and had a meeting with Chief Minister Navin Patnaik, lasting an hour and 10 minutes.

From Bhubaneswar, Mittal flew to New Delhi, where he called on Prime Minister Manmohan Singh, Finance Minister P Chidambaram, and others.