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Home > India > Business > PTI > Report

ArcelorMittal sets team to finalise blueprint for India plants

February 07, 2008 12:09 IST

ArcelorMittal is formulating a 15-member team to finalise the blueprint for setting up the 12-million-tonne integrated plants in Jharkhand and Orissa at a cost of about Rs 80,000 crore (Rs 800 billion).

"Our Group Management BoardĀ has approved the constitution of a 15-member technical team for our steel projects in Orissa and Jharkhand under the supervision of our Chief Technical Officer Pierre Gugliermina," ArcelorMittalĀ  Brazil Chief Executive Officer Jose Armando Campos told PTI.

He re-affirmed ArcelorMittal's determination in completing these projects and said that Indian engineering company M N Dastur & Co will prepare the detailed project report for these plants.

Campos said the study conducted by the CTO on these projects would complement the Dastur & Co's study, which is likely to be over by June.

ArcelorMittal is said to have identified Torpa and Kamdara blocks in Khunti and Gumla districts of Jharkhand as prospective sites for its proposed plant.

South Korea's Posco, the world's third largest steelmaker by output, is also in the process of setting up a 12-million-tonne greenfield manufacturing plant in Orissa.

Campos said, "Our Brazilian operations are a classic example of integrating plant management with Corporate Social Responsibility. Our company is the most respected in Brazil and we hope to replicate this model in India as well."

ArcelorMittal's Brazilian operations contribute about 10 per cent to the Group's operating margins of about $17 billion.

ArcelorMittal spokesman Stefan Schwarz said the company's immense experience in setting up projects worldwide, coupled with local economic development, would see it through in these two Indian states.

"Even if the projects are not identical, the community-based approach is definitely something we can use as an instrument to ensure that the local population is benefited," Schwarz said.

The company would provide adequate employment to the people of the project sites besides providing indirect employment to thousands of locals in due course of time, he said. The design of these plants envisage that the iron and steel making would be done through integrated blast furnace route.

Trying to avoid any opposition to the company's projects, AreclorMittal Head (Corporate Social Responsibility) and Secretary to the GMB, Remi Boyer said the company would be compliant with Orissa government's resettlement and rehabilitation policy.

"We do have a detailed study ready from Ecosmart and we will work on it with the government," Boyer said.

ArcelorMittal is still expecting iron ore block for meeting its captive requirements from the state governments.

However, the company along with GVK Power has been granted Seregarha Coal Block for generating power of about 750 Megawatts.

The Mittal Steel-Arcelor saga

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