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ArcelorMittal abandons Orissa steel plant

Thursday, 18 Jul 2013
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ArcelorMittal has decided to scrap its steel plant near Paradip in Keonjhar district of Orissa, due to land issues.


The 12 million tpa project had been facing delays in getting land and securing captive iron ore resources. The company intended to set up a steel plant in the state with an investment of Rs 40,000 crore in two phases. The unit would also include a coke oven, steel-making, rolling mills and a 750 MW captive power plant. The project required around 8,000 acre for the project. 


ArcelorMittal had signed an MoU with the Orissa Government in December 2006. It had also completed a feasibility report and environmental impact study for the project. Due to delay in land acquisition and current economic climate the company decided to scrap the plant.


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