Calcutta, June 26: Arcelor-Mittal is committed to set up the $9-billion greenfield unit in Jharkhand.

“Jharkhand is a priority project of Mittal Steel. Arcelor also sees big opportunity in emerging markets, which include India. Arcelor is happy with Mittal Steel’s Jharkhand project,” a Mittal Steel spokesperson told The Telegraph from London.

Mittal Steel and Arcelor have decided that the merged entity will implement the projects approved by the two companies prior to their union.

For projects after the merger, the reconstituted board would take the call, the spokesperson added.

L.N. Mittal visited Ranchi in October 2005 to sign a memorandum of understanding with the Jharkhand government.

Since then the company is working on the modalities of the project ? its first greenfield venture. In the meantime, the bid for Arcelor was launched.

But it is clear now that the two companies would honour the business decisions taken before their merger. For Jharkhand, the commitment is reinforced by Arcelor’s strategic decision to have a presence in emerging markets.

The 12-million-tonne (mt) steel plant will be set up in two phases of 6 mt each.

Sanak Mishra, the chief executive of Mittal Steel Jharkhand Ltd, the company incorporated in India to develop the plant, said the roadmap for the project was ready.

“We will require 10,000 acres for the plant and a 1-billion-tonne iron ore reserves for the unit,” Mishra said.

He said Mittal Steel has respected all commitments made to the Jharkhand government so far. But iron ore mine lease remains the key issue, which is holding up the project.

“Nobody can wait for long. We cannot wait indefinitely. The Jharkhand government should get going,” Mishra added.

Apart from Mittal, Tata Steel, Jindals and many others have applied for mine lease. The Steel Authority of India continues to hold the largest iron ore mine at Chiria in Jharkhand. Along with iron ore, land is another issue that needs to be settled.