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LATEST NEWS UPDATES | ArcelorMittal's Bellary steel project passes farmers' test by PP Thimmaya

ArcelorMittal's Bellary steel project passes farmers' test by PP Thimmaya

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published Published on Oct 20, 2010   modified Modified on Oct 20, 2010

Arcelormittal’s plans to set up a six million tonne per annum (mtpa) steel plant in Bellary district of Karnataka is on track, with farmers coming forward to accept the compensation package for land acquisition.

The world’s largest steel producer had zeroed in on Kuditini in Bellary district to set up its plant and laid out a land requirement of around 4,000 acres. However, these plans were opposed by some farmer groups who were seeking a compensation higher than what was fixed by the government.

According to a senior state government official, a few farmers have already accepted the compensation amount and more are expected to join them in the coming days. The state government had fixed land prices in three slabs of Rs 8 lakh, Rs 12 lakh and Rs 16 lakh, depending on the accessibility to the main road.

The official said that it is only a small minority of farmers who are still opposed to the land acquisition as they were seeking prices five times higher than what had been fixed by the government.

To further incentivise the farmers to agree to the land compensation, priority would be given to them in providing jobs in the proposed steel plant, the official said.

ArcelorMittal has been the first to get off the block in setting up its steel plant in Karnataka and has already put in an application for securing captive iron-ore mines.

The state government has invited fresh applications for issuing iron-ore mining licences, with ArcelorMittal being one of the applicants, and this is expected to be given by the end of November this year.

During the Global Investors Meet held in June this year, Karnataka received investment proposals worth Rs 2 lakh crore from the iron and steel sector, which includes companies such as Posco, Bhushan Steel and Essar.

Besides ArcelorMittal, the companies which have deposited money with the government to acquire land include Posco, Essar Steel and Brahmani Steel. Posco has deposited Rs 60 crore with the Karnataka Industrial Area Development Board (KIADB) and sought 2,500 acres in Koppal district of the state to set up its plant. Essar Steel has deposited Rs 25 crore to acquire 1,500 acres in Gadag district for its 6 mtpa plant.

Besides these steel majors, others who have deposited the money towards the land acquisition include Brahmani Steel , seeking 5,000 acres in Bellary district and Bhushan Steel for 4,000 acres in the same district. Surya Vijaynagar Steel has sought 500 acres in Bagalkot district.

The state has earmarked Bellary, Raichur, Koppal, Bagalkot, Gadag and Haveri for proposed steel zone.


The Economic Times, 20 October, 2010, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Arcelors-Bellary-project-passes-farmers-test/articleshow/6777622.cms


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