Mittal urges Paswan to expediate his project in India

By Staff
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Google Oneindia News

New Delhi, July 25 (UNI) Steel baron Laxmi Niwas Mittal today urged Steel Minister Ram Vilas Paswan to expediate the case of Arcelor Mittal project for the overall interest of the country.

During the meet with Mr Paswan here, Mr Mittal complained that virtually no progress has been made in setting up of his twelve million tonne (MT) steel plant project in Jharkhand over the last three years.

Responding to that, Mr Paswan said India being a democratic country, so things have to be moved through the bureaucratic set-up and some times it takes time as they also have to move very cautiously to avoid court cases and many legal tangles.

Participating in the discussion, Steel Secretary R S Pande said some of the problems were expected to be over as soon as the present Mining and Minerals Development (MMDR) Act to be amended and the Governemnt is keen on bringing on the amendment very soon before Parliament.

Mr Pande said whoever will set up plant first will have some added advantage and urged Mr Mittal to file his application before the Ministry for this purpose.

The 12 MT Arcelor Mittal's steel is being delayed as they have claimed for 600 MT of iron ore from the Chiria mines in Jharkhand.

This claim was made after the state government told them that they could get their share from that particular mines.

Incidently, the public sector Steel Authority of India Ltd (SAIL) had an agreement with the state goverment for a two billion tonnes (BT) of iron ore from the same mine and as a result the matter went to the court.

Replaying to questions, Mr Paswan said the Chiria mines and its adjoinng areas have a proven iron ore reserve which is estimated over three BT and even if the state government allocates two BT to SAIL one BT would be left and from there the state government could easily provide 600 MT to Arcelor Mittal's project and still they will be having a surplus of around 400 MT.

Iit is the state government which has to work fast on this issue, Mr Paswan added.

Intervening in the dialouge Mr Pande said it is very important that big players like Arcelot Mittal should be encouraged as the contry aims to produce 120 Mt of finished steel by 2015-16.

He said both Jharkhand as well as Orissa has the proven reserve of over three BT of iron ore but the production is very negligible compared to its iron-ore capacity.

He said these two state government's should act in a more pragmatic manner so that the country's target of becoming the world's largest steel producer with an output of 200 MT of finished steel by 2020 could be acheived.

Responding to a question, Mr Paswan said the Ministry has no objection if the state government gives 600 MT of iron ore to Arcelor Mittal after taking care of the SAIL's interest.

He said a very important and a positive aspect of the entire issue is that the Prime Minister himself is taking active interest in this project. So a permanent solution is this respect could be expected which would encourage others also for investing in India's steel sector, he added.

Mr Mittal is expected to meet the Jharkhand Chief Minister here this evening to pursue his case.

UNI

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