The Hindu Business Line : Mittal Steel signs MoU with Jharkhand for Rs 40,000-cr plant

Mr L.N. Mittal, Chairman and CEO, Mittal Steel Company, being welcomed by Mr Arjun Munda, Jharkhand Chief Minister, at his residence in Ranchi on Saturday. — Rajesh Kumar Sen

Ranchi , Oct. 8

MINERAL-rich Jharkhand added another feather to its industrial cap with global steel major Mittal Steel Company N.V. signing a Memorandum of Understanding (MoU) with the State Government for setting up a 12-million-tonnes-per-annum (mtpa) steel plant in the State at an estimated investment of Rs 40,000 crore ($9.3 billion).

Two other memoranda of understandings confirming the L.N. Mittal Group's social commitment to the region were also signed. Mr L.N. Mittal, Chairman and CEO of Mittal Steel Company, signed the memoranda of understanding on behalf of the L.N. Mittal Group, while Mr P.P. Sharma, Chief Secretary, Government of Jharkhand, signed on behalf of the State Government at a function held here at the residence of the Jharkhand Chief Minister, Mr Arjun Munda.

The $22.2-billion-turnover Mittal Steel Company is the world's largest steel company with operations spread over 14 countries across four continents. It has a comprehensive portfolio of long and flat products that meet the requirements of consuming sectors such as the automotive industry, appliances, machinery and construction.

The proposed steel-making project also involves mining operations. A detailed project report will soon be drawn up to identify the location of the proposed steel plant, iron ore and coal mines, and water sources. Definitive agreements will be entered into after the detailed project report is ready and is found acceptable to both Mittal Steel and the Government of Jharkhand.

The proposed steel project will be set up in two phases of 6 mt each. While the first phase is expected to be completed within 48 months from the date of agreement on the detailed project report, the second phase will be completed within 54 months after completion of the first phase.

In addition to the steel and mining projects, Mittal Steel will explore the feasibility of setting up a 2,500-MW capacity mega power plant in Jharkhand. Mittal Steel will also set up townships for its employees as part of the project. The steel and mining project is expected to provide direct employment for 50,000 people and indirectly for one lakh families.

The Government of Jharkhand has agreed to recommend iron ore reserves of 600 mt for the first 30 years of operations and reserve another 400 mt for the next 20 years. Besides, the State Government has agreed to recommend the allotment of suitable coal blocks.

`Better late than never'

TALKING to newspersons after the MoU-signing ceremony, Mr L.N. Mittal said that with the Indian economy firmly on the growth path and steel consumption on the rise with the focus on infrastructure development, this was the right time to set up steel-making capacities here. For him, Jharkhand, with its mineral resources, was the most suitable base for steel-making units. He said the proposed steel plant of Mittal Steel would make both long and flat products.

Asked why he took so long to set up operations in India, Mr Mittal quipped, "Better late than never." On whether he had any other acquisition plans in mind, he said, "I never comment on acquisitions in advance."

Speaking on the occasion, Mr Arjun Munda, Chief Minister of Jharkhand, said the proposed project of Mittal Steel would provide a boost to industrial development in Jharkhand and contribute to the nation's economic wealth.

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