The Hindu Business Line : Mittal to set up plant in Orissa

Mittal's mind
Not happy with the progress in Jharkhand
Focus on India and China for its expansion plans
Non-committal on any takeover plans in Asia.

STEEL TALK: The steel tycoon, Mr L.N. Mittal, and the Orissa Chief Minister, Mr Naveen Patnaik, at a press conference in Bhubaneswar on Friday. — Ashoke Chakrabarty

Bhubaneswar , July 7

The Arcelor-Mittal Chief, Mr Lakshmi Niwas Mittal, announced here on Friday that his next destination was Orissa and his company would set up a 12-million-tonne capacity greenfield steel plant in the mineral-rich State.

Accompanied by his son and Chief Financial Officer of the company, Mr Aditya Mittal, the NRI businessman met the Orissa Chief Minister, Mr Naveen Patnaik, before making his plans public.

The proposed plant will be set up in two phases and involve an investment to the tune of Rs 40,000 crore, Mr Mittal said.

MoU to be signed later

The memorandum of understanding for the proposed plant will be signed after officials of both Arcelor-Mittal and the State Government work on the various details .

Mr Mittal did not make it clear whether his company had dropped his steel project in Jharkhand for which an agreement was signed last year.

He, however, said that he was not very happy with the progress of the project despite getting support from the Jharkhand Government.

"Though the Jharkhand Government is extending its cooperation, I am not very happy with the progress. We are weighing our options. We want to move fast for our establishment in India. We may take up the Orissa project first," Mr. Mittal said at a crowded press conference after his discussions with Mr Patnaik.

The steel mogul expressed his appreciation for the Orissa Government's presentation, which gave an overview of the investment scenario covering infrastructure, port, road, rail connectivity, human resources and availability of minerals.

Patnaik promises all help

On his part, Mr Patnaik promised all help from his Government and said a team of officials would assist Arcelor-Mittal to finalise the details of the proposed mega steel project that would create downstream industries and generate employment opportunities for the people. Mr Mittal flew in from London along with his son and reached Bhubaneswar at 9.30 a.m. He reached the State Secretariat at 10-45 a.m. and had a detailed discussion with Mr Patnaik and the State Industry Minister, Mr Biswabhushan Harichandan.Apart from Mr Mittal and his son, the visiting Arcelor-Mittal team included the company's Chief Operating Officer, Mr Malay Mukherjee, from their London office and Mr Sanak Mishra and Mr Rajendra Agarwal from the company's India office.

Focus on India, China

Mr. Mittal reiterated that his company would now focus its attention in India and China for its expansion plans. He, however, refused to divulge if the company had any takeover plans in Asia.

Arcelor-Mittal had emerged the world's largest steel conglomerate with an annual production capacity of 120 million tonnes and operating in 27 countries, he saidbefore flying to New Delhi.