The government of Karnataka said on Thursday that it would sign an agreement with leading global steelmaker ArcelorMittal in June for the company to build a 6-million tonne steel plant.
ArcelorMittal plans to invest Rs 30,000 crore ($6.6 billion) in the project, which will also have a captive power plant with capacity of 750 megawatts, the government said in a statement.
The company aims to acquire 4,000 acres of land for the plant. The project will be in addition to its plans to build steel plants in Orissa and Jharkhand.
"The formal memorandum of understanding will be signed in Bangalore for the Rs 30,000-crore project during the global investors meet on June 3 and 4," a top Karnataka government official said.
ArcelorMittal chairman L.N. Mittal meanwhile expressed concern over slow progress in the two projects, but ruled out an exit at this stage. "We are not satisfied with the progress made in Jharkhand and Orissa. We hope that we can make more progress than what we have achieved so far ... But our endeavour will continue," he said.
POSCO plans new plant
South Korea's POSCO plans to set up a 6 million-tonne steel plant in Karnataka, in addition to its planned project in Orissa, a company official said.
"It is absolutely in addition to our Orissa project,” Simanta Mohanty, the Bhubaneshwar-based India spokesman for the company said. “We remain committed to our Orissa project.”