International steel major, Mittal Steel Co N.V., on 8 October 2005 entered into an MoU with the Jharkhand government for its proposed 12 million tpa integrated steel plant in the state. The total investment is likely to be in the region of Rs.40,000 crore ($9.3 billion.)

A detailed project report is currently in the making. Once completed, basic parameters like the project location, iron ore and coal linkages, water sources, etc. will be finalized.

The Jharkhand government has agreed to provide 600 million tonnes of iron ore to the steel project for the first thirty years of operations, and 400 million tonnes of ore for twenty years thereafter. The state government has also agreed to provide suitable coal blocks.

The steel project will come up in two phases of 6 million tpa each. Phase I will be completed in four years from zero date, and Phase II in 54 months thereafter.

The mining and steel project will provide employment to an estimated 50,000 people.

Mittals also entered into two other MoUs with the state government for social upliftment projects. The Mittal group has also proposed to set up a 2,500 MW coal-based power plant. It will also set up townships for employees of the steel plant.

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