MoU Inked With Mittal For Rs 50K Cr 12 MT Integrated Steel Plant in Kendrapara
Bureau,Odishabarta
Bhubaneswar, In a significant development related to investment in the industrial sector of Odisha, a memorandum of understanding (MOU) was signed today between the State Government and Arcelor Mittal Nippon Steel for setting up a 12 MT (million ton) integrated steel plant in Kendrapada district.
The mega plant will be established with an investment of Rs 50,000 crores. The MoU was signed by Hemant Sharma, Principal Secretary Industries and Dilip Oommen, Chief Executive Officer, AMNS India at New Convention Centre in Lokaseva Bhavan here.
Chief Minister Naveen Patnaik and steel magnate L N Mittal graced the MoU signing ceremony.
Prafulla Mallik, Minister Steel & Mines and Works and Atanu Sabyasachi Naik, MLA, Mahakalpara were also present.
Chief Minister stated that Kendrapara was the Karmabhumi of Biju Babu and he loved the place and its people from the core of his heart. He also stated that Kendrapara provides ideal prospects for an Integrated Steel Complex and the State Government will provide all the required support and facilitation for the setting up of this mega project.
He also stated that Odisha has successfully emerged and the most attractive investment destination in the country today because of its forward-looking industrial policy, facilitation mechanism, and robust infrastructure growth.
Mittal mentioned that he is very happy to partner with Government of Odisha in setting up this integrated steel complex at Kendrapara, which is in addition to the other investments of AMNS in Odisha including the 6MTPA pelletization plant in Paradeep likely to be expanded to 12 MTPA and the beneficiation complex and slurry pipeline already operational in Keonjhar.
He further mentioned that he is amazed at the speed of work by the Government of Odisha, and termed it as the best he has experienced in his world-wide business experience. He reiterated that AMNS is committed to partner with Government of Odisha in the journey for industrial growth journey of the state.
Chief Secretary, Development Commissioner, Principal Advisor to Chief Minister, Secretary to Chief Minister Transformation and Initiatives (5T), and other senior officials of the State Government were also present.
Worth mentioning, in 2006 steel baron Lakshmi Mittal-controlled ArcelorMittal had signed a memorandum of understanding (MoU) with the Odisha government to set up a 12-million tonne Greenfield integrated steel plant in four phases at Keonjhar which included a power plant, entailing an investment of $12 billion (Rs 50,000 crore as per the exchange rate then).
The company had completed important milestones such as the completion of a feasibility report, an environmental impact assessment study, and other relevant technical reports.
Besides, it had held 8 gram sabhas (public hearings) out of 15 required for the land acquisition for the project.
However, the company citing inordinate delays, problems in acquiring land and securing iron ore linkages pulled out of the project on July 17, 2013. The company had, however not renewed its MoU for the Keonjhar plant which was due for renewal in December 2011.
The company had in a statement issued on July 17, 2013, said, “ArcelorMittal has met today with the Government of Odisha’s Chief Secretary to inform him that the company has decided not to progress with its planned construction of an integrated steel plant and a captive power plant in the district of Keonjhar”.
The then Executive Vice President and member of the Management Committee, CEO of India and China for Arcelor Mittal Vijay Bhatnagar had said that over the last seven years they had invested considerable resources into the project adding that the delays relating to land acquisition and allocation of captive iron ore blocks meant the project was no longer viable.
Source;Ommcom News
