Bhubaneswar: The talks between Chief Minister Naveen Patnaik and Chairman, ArcelorMittal group, LN Mittal through video-conference on Saturday have thrown up the possibility of the steel conglomerate launching a project in Odisha.
Opening the discussion, the Chief Minister expressed his happiness over Mittal investing in two mines in the state and evincing interest in its plant in Paradip.
Congratulating Naveen for his deft handling of COVID-19 situation, Mittal said as their Hazira project in Gujarat could not take off, his group was planning for production and export of pellets from Odisha.
Stating that they have a lot of ideas for expansion in Odisha, Mittal said his group had Rs 2000 crore initial investment plan and was working on Sagasahi and Thakurani mines.
Mittal’s ArcelorMittal Nippon Steel India (AMNS India), the new name for Essar Steel India after a joint venture signed between ArcelorMittal and Nippon Steel Corporation, has a 6 MTPA pellet plant at Paradip. His company is planning to expand the pellet plant at Paradip and increase its production capacity from 6 MTPA to 12 MTPA, he said.
He also hinted at an expansion of the iron beneficiation facility at Dabuna in Keonjhar from 5 MTPA to 16 MTPA.
It may be noted that ArcelorMittal had signed an MoU with the state government way back in 2006, to set up a 12-million-tonne per annum steel plant at Patna in Keonjhar with an investment of Rs 40,000 crore.
As per the MoU, the project required around 7,753 acre of land. Of the required land, 4,905 acre was under private possession. But the steel giant faced the local resistance in the acquisition of land. The government also could not hold gram sabhas in 15 villages of the project area for the purpose.
Finally, in July 2013, the Mittal Group withdrew from the Odisha project.