ET reported that facing delays in land acquisition and protests by tribals in India for its proposed units, top global steel producer ArcelorMittal has revised its strategy and will now focus on smaller plants with annual production capacities of 1.5 million tonnes to 3 million tonnes.

The USD 65 billion group led by London based industrialist Mr LN Mittal which had proposed two mega steel units in India of 12 million tonnes each in Jharkhand and Orissa, now views Karnataka as the state with the least implementation risk.

Mr Aditya Mittal CFO of ArcelorMittal told an investor conference that "For Karnataka Greenfield project, land acquisition is expected to be completed by the end of this year. We are also expecting to get some mining leases in Karnataka.”

He said the group will consider factors beyond iron ore deposits for future projects like logistics, proximity to markets, infrastructure, execution time, social factors, business friendliness and a downstream presence which could supply to its global network of mills.

Mr Mittal said that "Our strategy in India has changed. We are now on the ground selling branded steel. Our first domestic production is expected by 2013.”

ArcelorMittal expects India's steel demand to triple to 150 million tonnes by 2020 and feels the portfolio can be balanced by establishing a presence in the country, which it called one of the most growth-oriented markets in the world.

Mr Mittal said that even though progress had been made in getting licenses for mines and land in Jharkhand and Orissa, the plans had been slowed due to what he described as high tribal influence"

(Sourced from ET)