No problem for Jharkhand's Arcelor Mittal project

The Jharkhand government said on Thursday Arcelor Mittal was happy with the progress on its proposed steel project and the requirement of land, power and water would be definitely addressed.

"Their (Arcelor Mittal) management board member Malay Mukherjee was here in Ranchi. He said the company is satisfied with the development of the proposed steel project in Jharkhand," Chief Minister Madhu Koda told reporters in Ranchi.

He was reacting to a query that steel tycoon L N Mittal reportedly expressed disappointment with his projects, both in Jharkhand and Orissa, last week.

Expressing happiness over the company participating in the ongoing trade fair in the state capital, Koda said the state would leave no stone unturned with regard to the steel major's 12-million-tonne integrated steel project entailing an investment of about Rs 40,000 crore (Rs 400 billion).

"They need 600 million tonne iron ore, and the state government will provide them with the same," the chief minister said without committing on the disputed Chiria Mines.

"We have a number of iron ore mines, and their requirement will be met," Koda said, adding that he was keen to see the project in motion at the earliest.

Malay Mukherjee, member on the management board of the Arcelor-Mittal, had on November 15 said the company was satisfied with the progress of the project.

The steel major would announce the site for its Jharkhand project after examining all aspects including availability of water, power and transport connectivity for the proposed plant he said, adding the company shortlisted Torpa, Saraikela and Galudih and would finalise on one in a month's time.

The Jharkhand government had last year offered Ankua Mines as an alternative to Chiria Mines.

After signing the MoU with Jharkhand in 2005 for setting up the plant, the company is keen to have a share from iron-ore rich Chiria Mines, and reportedly even expressed its keenness to cooperate with the Steel Authority of India Ltd to develop Chiria Mines as the SAIL held many leases.

The SAIL and the Jharkhand government are locked in a legal battle over two of the six blocks in Chiria Mines in West Singhbhum district in the state.

The Jharkhand government contests that the two leased blocks had been with IISCO and that those should be given back to Jharkhand following IISCO's merger with SAIL.

According to sources, reputed private steel companies who signed MoU with Jharkhand have their eyes on the Chiria  which has an estimated two billion tonnes of rich quality iron-ore deposits.