Karnataka: ArcelorMittal to lose its land?

Ballari: The state government is reportedly planning to take back the 7,500 acres allotted to ArcelorMittal, and Uttam Galva Steel as they have failed to make use of the land to set up their promised steel plants in the ore-rich district of Ballari.

A senior officer of the department of commerce and industries said that a Cabinet note had been prepared on the issue and it would be placed before the next Cabinet meeting for its  approval.

Arcelor Mittal had signed a Memorandum of Understanding (MoU) for setting up a six million tonne steel plant in the state at the Global Investors Meet -2010 and in 2013, Uttam Galva Steel bought Brahmani Steel, from mining baron turned politician,  Gali Janardhana Reddy,  who had also proposed establishing a six million tonne steel plant in Ballari district.

Sources said the department of commerce and industries had written to ArcelorMittal and Uttam Galva Steel asking them to  establish their steel plants in Ballari as promised but they informed it that they had dropped the plans owing to sluggishness in the steel sector and requested that they be allowed to use the land for other purposes.

ArcelorMittal  wanted permission to use the land allotted  to set up a solar plant instead of a steel plant in the district, but the government reportedly felt a solar plant would not generate as  much employment, according to sources.   

The two steel majors had expected to be alloted captive iron ore mines as assured during the Global Investors Meet, but  this was not possible owing to the guidelines issued by the Supreme Court and the amended rules of MMDR Act 2015, officers explained.