Bhubaneswar, Aug. 25: More than a month after ArcelorMittal announced to scrap its 12-million tonne steel project in Keonjhar district, the state government has hit back.

The state government said the world’s largest steel maker had shelved the project as it was “not serious” about it.

Responding to a question by BJD MLA Prafulla Samal in the Assembly on Friday, steel and mines minister Rajanikant Singh said despite several requests, ArcelorMittal did not deposit the estimated cost of land amounting to a little over Rs 59crore.

“The required land compensation could not be acquired after two years of publication of notice under the Land Acquisition Act,” Singh said.

Singh also asserted that the project authority did not even deposit the 10 per cent of establishment charges of approximately Rs 2crore. The charges were meant for land and not to acquire plots in two villages Childa and Baliaposhi.

The minister said: “Steel company was given several reminders from time to time to deposit the estimated land cost and 10 per cent establishment cost. It was made aware of the provisions of the Land Acquisition Act. As per rules, the proceedings to acquire land lapsed as the company had not fulfilled the mandatory requirements.”

The government said the revenue and disaster management department had issued notices during 2009-2011 for acquisition of private land measuring 2112.932 acres in seven villages where gram sabha had been conducted. In two villages, there were opposition from the villagers and the mandatory gram sabhas could not be conducted.

The state government said the Odisha Industrial Development Corporation (Idco) had filed lease for government land of 2847.502 acres (including forest land) and private land of 4905.807 acres in 14 villages under Patna tehsil in Keonjhar for establishment of industries and township for ArcelorMittal. Though ArcelorMittal has abandoned its plan, 11 steel projects are coming up in Keonjhar district.