ArcelorMittal, world's largest steel maker, controlled by billionaire Lakshmi Niwas Mittal, has backed out from the six million tonnes per annum (MTPA) steel mill it had proposed for Bellary district, Karnataka. The government had granted Luxembourg-based steel behemoth about 2,500 acres of land allotted for the project.
The multinational steel corporation which has a 98 MTPA capacity worldwide has requested the state government to allow the land to use for purposes other than setting up the steel plant. "The company has asked for a change in the land use," Industries Minister R.V.Deshpande said recently.
The company has instead asked the state government if it can set up a solar farm in the said plot. The state government, which is sympathetic to the hard times the steel sector is passing through, however, has not responded yet.
Lakshmi Mittal, worth $8.8 billion according to the Bloomberg Billionaires Index, had inked the MoU for the steel mill project at a gala global investors meet in Bengaluru in June 2010 in then Chief Minister B.S.Yeddyurappa's presence. Then BJP regime had touted the MoU as its significant investment achievement.
The global steel giant has cited the bad patch the steel sector is passing through, and the regulatory environment for its decision, and asked for an order from the government permitting change in land use.