Odisha government may decide on the application of ArcelorMittal for renewing its memorandum of understanding (MoU) on the proposed 12 million tonne per annum (mn tpa) steel plant, in the next six to nine months.
In 2006, both the state government and ArcelorMittal signed the agreement for the steel plant and the pact expired on December 31, 2011.
Odisha government, which is considering the renewal application from the company, would decide on it by November, the firm expects.
Several factors, including challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals delayed the implementation of the project. It may be noted that the firm, in the meantime, explored alternative investment opportunities.
In 2005, the firm signed an agreement with the Jharkhand government to build a 12 mn tpa integrated mill. The project could not make much progress there too.
Also, the firm signed an agreement with Karnataka government in June 2010 for 6 mn tpa plant at a cost of $6.5 billion.
In May 2012, ArcelorMittal Chief Lakshmi N Mittal had said India plans might not materialise for “5 to 10 years”.
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