BS reported that ArcelorMittal and Jindal Steel and Power Ltd have requested the Orissa government to renew the memorandum of understanding signed with the state for their proposed investments.
In its letter to the state steel and mines department, JSPL pleaded for increase of the MoU validity period by another three years after it lapsed in November 2011.
Similarly, ArcelorMittal has applied for extension of its MoU by another five years starting from December 2011, when it expired.
JSPL requested the government to extend its MoU citing progress achieved on the construction of its proposed 6 million tonne steel plant at Angul. JSPL has already commissioned its first unit of captive power plant with 135 MW capacity, out of its proposed 900 MW plant and has also recently started its plate mill, which can produce 1.5 million tonne a year. The letter from JSPL said that “All the balance facilities of the 2 million tonne capacity steel plant will be ready for production progressively by June 2012. The complete 6 million tonne capacity steel plant is expected to be commissioned by the end of 2014.”
ArcelorMittal expressed its commitment to invest in the state and said since it had got several statutory approvals to build its steel plant along with water use permit, it deserves to be given more time. Mr Sanak Mishra vice president of the company's India project said in the request letter said that “After the signing of the MoU, project activities have made progress in multiple dimensions, albeit, at a slow pace, on account of a large number of complex and time consuming processes. At the same time the company remains committed to continue its presence in Orissa.”
ArcelorMittal had signed a MoU in 2006 for setting up of a 12 million tonne per annum steel plant and a captive power plant at Patna in Keonjhar district at an estimated investment of INR 40,000 crore. But it has not been able to make any progress on the project because of stiff opposition of local villagers to the land acquisition process. As per the MoU, the project needs around 8,000 acres of land.
(Sourced from BS)
