The future of ArcelorMittal’s green-field steel plant in Orissa remains uncertain as the world’s largest steelmaker is delaying payment to the state government for acquisition of 1,500 acres of land meant for the facility. ArcelorMittal has already taken over part of the land needed for its project in Jharkhand. It has fueled a speculation that it may go ahead in that state but delay the Orissa project till the economy turns around.

 

However, the fact remains that, the LN Mittal-controlled company has not reached financial closure for either project. Earlier, ArcelorMittal had announced plans to set up steel plants of 12 million tonnes per annum each in Orissa and Jharkhand for a total investment of $20-25 billion. But the company has not paid the Orissa government Rs 30 crore for the land despite several reminders, a state government official said.

 

Sanak Mishra, ArcelorMittal’s head for green-field projects in India, confirmed that the Orissa government had asked the company to pay for the land. But the company was still to respond to the demand as it was not made through the proper channel as should have been done by Industrial Infrastructure Development Corporation of Orissa, he added. However, ArcelorMittal India CEO Vijay Bhatnagar said the company didn’t intend to cancel the projects, but may delay it by two years.