Vineetha Athrey of CNBC-TV18 reported that ArcelorMittal is gearing up to start the construction of its INR 30,000 crore steel plant in Karnataka.

It is learnt from sources that the company has chalked out plans for the first phase of its 6 million tonne per annum plant in the state. The construction will happen in two phases of 3 million tonne per annum each.

Further, Arcelor Mittal is awaiting official land transfer from the Karnataka government. The government has already acquired 1,827 acres of land towards the first phase which will be officially transferred to the company in two to four weeks.

The company is looking to do some basic construction to indicate land possession about three to four months after taking over the legal possession of the land. The phase one construction is likely to begin in a year as the company is awaiting several clearances including environmental clearances which are expected to come through in about a years time.

Arcelor Mittal has already acquired 2,600 acres of land, it has paid INR 178 crore as compensation to the farmers. Also, the company has deposited about INR 268 crore with the Karnataka government. This amount will be used towards compensation.

In a response to CNBC-TV18 query the company said that "Karnataka Industrial Areas Development Board has initiated the transfer process and are securing the requisite permissions to initially handover 1,800 acres to us. We do not envision any delay in construction after land is transferred and necessary resources secured towards building a 6 million tonne per annum plant in Karnataka."

(Sourced from www.moneycontrol.com)