Steel giant ArcelorMittal is yet to secure possession of the entire land required for the Rs 30,000-crore steel plant in Karnataka, the state Legislative Assembly was informed on Tuesday. Chief Minister Siddaramaiah informed the Assembly that 2,000 acres of the total 4,865 acres sought by the steel giant had been allotted in Bellary district.
ArcelorMittal inked the agreement in June 2010 at the global investors' meet organised by the Karnataka government to set up a 6 million tonne per annum (mtpa) steel plant. South Korean steel giant Posco recently pulled out its proposed Rs 32,300 crore, 6-mtpa project in Karnataka's Gadag district because of difficulties in land acquisition and delays in securing mining rights. This MoU was also signed at the 2010 GIM.
The Chief Minister acknowledged in the House that Posco project was "dropped" following farmers' resistence and agitation, supported by religious leaders, opposing land acquisition. Figures provided by the Chief Minister in response to a question from KM Shivalinge Gowda (JDS), who sought to know the extent of land allotted to industrialists
An extent of 1,274.53 acre has been allotted by the Karnataka Industrial Areas Development Board to 131 units for projects cleared in GIM 2010. Of them, only 22 projects had take off. 794.45 acres had been allotted to 29 units cleared during GIM 2012; nine of them had started work on their projects.
The then BJP government had showcased the MoUs signed during the two GIMs with investment potential of lakhs of crores of rupees as a major feather in its cap, but implementation has been much slower than expected, though state industry officials are at pains to explain that big projects take their own time to fructify for various reasons.
Shivalingegowda said at many places, tracts of land had been acquired from farmers without fully paying them compensations, while industries which are supposed to come up there are yet to take off leaving the areas in a state of neglect.
READ MORE ON ArcelorMittal, Karnataka, Siddaramaiah , Bellary district, Gadag, Karnataka Industrial Areas Development Board
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Dont see mkt going anywhere now; like Bharat Forge: Dipen