'Land issues in J'khand, Orissa to be solved soon'

New Delhi, Mar 25: Amid reports of the South Korean steel major POSCO rethinking on its investment plans in India, world's biggest steel producer Arcelor-Mittal has said it is trying to set up a plant either in Orissa or Jharkhand despite land hurdles in these states.

Calling them as ''genuine'' problems, the company President and CEO Lakshmi Niwas Mittal said, ''We are facing the same problems of land and mine acquisitions that POSCO is facing. The delay is not on part of the Government but due to local issues.'' Mr Mittal, whose company plans to invest about Rs 40,000 crore for its 12 million tonne (MT) steel facility in India, expressed concerns over the speed at which the process of land acquisition was taking place and said Arcelor-Mittal was in talks with the state government and the Centre and the issue would be solved soon.

''All the greenfield plans are facing the same problem. Local people need to be educated about the benefits of such mega projects.

They should understand that plants would help the process of development,'' he told reporters last evening.

On a poser to the company taking over the world's fourth-biggest steel firm POSCO, he said, ''I am not aware of any such plans, these are all rumours.'' Arcelor-Mittal has been planning to expand in Asia and has made attempts in China, but with moderate success. It also plans to build a greenfield steel plant in India, where steel demand is forecast to double by 2012, but has failed to make much progress so far.

POSCO which also plans to build a Rs 52,000 crore steel project with a 12 MT capacity in India -- country's largest ever foreign investment project -- has faced stiff opposition from local villagers, with farmers unwilling to give up their land.

Korean Economic Daily on March 16 reported that Arcelor-Mittal was mulling a hostile takeover of Pohang Steel Company (POSCO) and that a message about Arcelor-Mittal's interest was conveyed to the Korean major last month.

The India-born steel tycoon was in India at the convocation ceremony of management institute IMT Ghaziabad.

UNI