ArcelorMittal writes to Steel Ministry on delay in mining lease
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17/08/2012
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Pioneer (New Delhi)
Not able to make progress in its proposed `50,000 crore steel project in Jharkhand, the world’s largest steelmaker, ArcelorMittal, has sought the Centre’s help in expediting grant of mining lease in the State. ArcelorMittal raised the issue of inordinate delays in getting mining lease for Karampada mines in Singhbhum district of Jharkhand, telling the Steel Ministry, “...All requirements have been completed but stage forest clearance is pending for the last 24 months”.
ArcelorMittal had entered into a pact with Jharkhand Government way back in 2005 for setting up a 12-mtpa steel plant at an estimated cost of `50,000 crore ($12 billion). The Centre had given its nod to the State Government’s proposal for granting prospecting licence to ArcelorMittal over 662.95 hectares in Karampada region in 2010. The mine is estimated to have 200 mt of iron ore reserves.
According to a Steel Ministry official, after the global giant raised the issue of delays, Steel Secretary DRS Chaudhary has urged the State Government to have “a single window system for handling such applications”. The Jharkhand Government, in turn, has said it is awaiting a decision in a case of similar nature, the official said.
The steelmaker has also been facing delays in land acquisition and regulatory hurdles to launch the venture. Faced with opposition from villagers from Khunti and Gumla areas, where the plant was proposed initially, it is making efforts to acquire land at Petarwar in Bokaro district.
ArcelorMittal also plans a $12-billion steel mill in Odisha, which too is hanging fire for long. Meanwhile, according to an official document, the company last month raised the issue of extremist problems in States like Jharkhand and Odisha at a review meeting of the Steel Ministry last month.