Ranchi, Feb. 25: One of the top executives of global steel and mining behemoth ArcelorMittal met chief minister Raghubar Das here today, triggering hope of reviving its steel project whose MoU was signed way back in 2005 but is stuck due to land acquisition, mining and clearance hurdles.
Drawing attention to the "change in atmosphere at the levels of the Centre and state", Sanjay Sharma, ArcelorMittal chief executive officer (CEO) who looks after projects in China and India, said he and Das discussed "challenges" facing the company's proposed greenfield project in their afternoon meeting at Project Building.
Tangles over land acquisition and mines allocation held up the project, incidentally ArcelorMittal's first foray in India, for almost a decade.
But, referring to the new political dispensation in Delhi and Ranchi after Lok Sabha and Assembly elections, Sharma told The Telegraph after the meeting: "The overall scenario is changing. Though this was a courtesy call after the new chief minister took oath of office, we did discuss challenges we are facing in commissioning the project in Jharkhand."
Sharma's optimism may not be unfounded. Reliable sources said after meeting Sharma, chief minister Das said he would review files pertaining to issues that held up the ArcelorMittal project, including the big three, land acquisition, mines allocation and environment clearances.
Despite the long-played-out delay, Jharkhand's rich coal and mineral deposits are still inducements enough for ArcelorMittal to hope for a breakthrough.
"Obviously, raw material is our strategic priority. Raw material is a critical factor for setting up a steel mill. Once we get approvals, we will expedite work on the project in phases," Sharma, who studied metallurgy in IIT-Roorkee, said.
ArcelorMittal representatives also met secretaries of forest and environment and mines departments to request stage I forest clearance for Karampada iron ore mining lease in West Singhbhum.
In one part of Karampada, ArcelorMittal had received prospecting licence two years ago. But, it hasn't received permission to drill and ascertain how much ore the region might have.
But, these are minor niggles. The major problem bogging the steel behemoth since it signed an MoU with the state government in 2005 for a greenfield 12MTPA steel plant, including a captive power facility, is land.
ArcelorMittal was forced to keep changing sites across districts when villagers refused to part with land.
Torpa-Kamdara along Khunti and Gumla borders was initially chosen for the project. Then, the project shifted to Petarwar-Kasmar area in Bokaro. Finally, the company zeroed in on Chas, Bokaro, for the project and also scaled it down to 3MTPA to start with. But, though a few acres were directly bought from villagers, the project has not gained pace on the ground.
The company was also allotted the Seregarha coal block in Latehar, but it got cancelled after the Supreme Court's directive in the wake of the Coalgate scam.
Down south, it is facing better luck. It inked an MoU with Karnataka government in June 2010 to set up a 6MTPA steel plant. Company sources said the company has acquired the bulk of land it needs.
