Sanak Mishra, CEO of Mittal’s Jharkhand Greenfield Project, in Calcutta on Friday. Picture by Kishor Roy Chowdhury

Calcutta, Aug. 11: Mittal Steel will apply in four weeks for land to set up its 12-million-tonne steel plant in Jharkhand.

Sanak Mishra, chief executive officer of Mittal’s Jharkhand Greenfield Project, said the company needed about 12,000 acres. He said the choice of locations has been narrowed down from six to three — Saraikela, Galudi and Torpa.

Mishra sought to dispel misgivings on the Jharkhand project, after L.N. Mittal announced a similar steel project in Orissa. “We are pursuing both Orissa and Jharkhand. Whichever comes first would be the first candidate but not the only candidate,” Mishra said.

Analysts said a formal bid for land implies a step forward for the Jharkhand project.

India is the first country where Mittal Steel will set up a greenfield plant; so far it has opted for the merger route, the latest being the acquisition of Arcelor.

Mishra said the detailed project report for the Jharkhand plant would be ready by October, adding that a township for the employees is also on the cards along the lines of Tata Steel’s Jamshedpur and SAIL’s Bokaro township.

The initiative on township will also facilitate in the formulation of a rehabilitation package for the displaced by the state government. A policy in this regard is likely by the end of the month.

Land acquisition is only one of the vexing problems of the steel sector as it aims for a capacity of 110 million tonnes by 2020.

The Mittal project, along with other big-ticket projects of Tata Steel, Posco and the Jindals, have got bogged down by the absence of mining rights.

Mishra said the company was holding parleys with the Jharkhand government on the rights. It has reportedly sought a slice of the iron ore deposits at Chiria, which is with SAIL.

“Viability of such a project will largely depend on mining rights,” he noted.

Mittal Steel is also inspecting locations for its plant in Orissa. So far, it has explored four to five sites in the state.

A consultant would be appointed shortly for the Orissa project, Mishra said.

Mittal Steel chief L.N. Mittal had expressed his displeasure over the delay in the Jharkhand project.

After the Orissa plan was unveiled, experts believe, both states will now act overtime to win this coveted project which will have huge multiplier effect on the states’ economy.

Mishra was in the city to participate in the annual general meeting of The Indian Institute of Metals today.