Mittal to look for new sites for his Indian steel plants

London/Ranchi, Oct 5 (PTI) ArcelorMittal, the world's
largest steel maker, Monday threatened to abandon its USD 20
billion steel projects in two Indian states over delays, but
will look for new sites within the country for the plants.

"The company continues to work on its two greenfield
projects in eastern states of Jharkhand and Orissa. However,
in the event that land acquisition continues to prove
difficult, we will start to search for alternative sites in
India...," ArcelorMittal Chairman and CEO Lakshmi Mittal said
in a statement.

The statement followed a report in The Financial Times,
which carried an interview of Mittal, stating: "Lakshmi Mittal
is close to pulling out of a USD 20 billion plan to build two
large steel plants in India..."

In the statement, Mittal said: "ArcelorMittal has no
plans to quit its investment plans for India... is an
important country for steel demand growth and... important
part of ArcelorMittal's long-term strategic plans."

Shortly after the merger of Mittal Steel with Arcelor in
2006, Mittal had announced plans for a 12-mtpa steel plant in
Orissa and thereafter an identical project in Jharkhand. But
work on acquiring land for the projects hit a wall of
opposition from locals.

"I have no information from the company....I believe that
land acquisition for that company's project is on," said
Orissa Chief Minister Naveen Patnaik.

Mines Secretary Santha Sheela Nair said ArcelorMittal has
"not approached us with any specific complaints. Whatever
issues regarding mining (that is) pending with us, we have
already cleared that."

Jharkhand Chief Secretary Sheo Basant told PTI that
"officially, they have not communicated anything to us."

Out of its requirement of 8,000 acre of land for the
proposed steel plant, township and CPP in Orissa, no land has
so far been allotted to the company. ArcelotMittal has,
however, been holding 'gram sabhas' (village meetings) to
acquire land under Patna Tehsil in Orissa's Keonjhar district.

"They (ArcelorMittal) are very positive about their
plan in Orissa", Patnaik told reporters.

Mittal told FT that people in India had to be "educated"
into supporting gradual industrialisation, including the need
to build new steel plants on agricultural land.

Jharkhand's Industry Director Aradhana Patnaik said: "The
government can facilitate a dialogue... but the steel company
has to purchase land from the villagers by winning their
confidence... It seems there is a big communication gap
between ArcelorMittal and the villagers."

"Although Mittal said he was still committed to building
at least one steel plant in India, abandoning his plan to have
two sites producing between them about 24 million tonnes of
steel a year by around 2015 would be a big blow," FT said.

The newspaper quoted Mittal as saying that the delays in
persuading farmers and others to sell the land required for
building the plants were "unacceptable" to the company. PTI
TEAM
AM