Steel baron Lakshmi Niwas Mittal’s foray into his homeland after his worldwide conquests will begin to bear fruit in about 4 years.
Arcelor Mittal, the world’s largest steel maker that he controls, expects to start manufacturing steel in India by 2012, Mittal said on Wednesday. The company, which announced two steel projects of 12 million tonnes each in Jharkhand and Orissa, admitted that costs would go up due to procedural delays and the rising cost of materials.
“We hope to lay the foundations of the Orissa project early next year and if everything goes according to plan, we should start making steel in 2012,” said Mittal, chairman and chief executive officer of Arcelor Mittal.
With energy and commodity prices at all-time highs, Mittal admitted that the cost of the two projects would also go up.
“When the projects were announced two years back the situation was different. The cost of any project has gone up by atleast 30-50 per cent in the last one year due to a rise in the cost of steel, construction material, fuel,” Mittal said. He, however, refused to specify the quantum of increase in the project costs.
The company has already submitted the Detailed Project Report for its Orissa project to the state government in July this year. The report for the Jharkhand project would be ready by year-end.
The company is also in the process of finalising its relief and rehabilitation policy for the two projects.“The key issues for us is land acquisition and mining licences. We are working on both these counts,” said Aditya Mittal, chief financial officer, Arcelor Mittal.