Bangalore, Nov 28 (IANS): World's largest steel maker ArcelorMittal plans to set up a six-million-tonne integrated steel plant in Karnataka on an investment of $6.41 billion, Chief Minister B.S. Yeddyurappa said here Friday.
"The Indian subsidiary of ArcelorMittal proposes to invest Rs.30,000-crore (Rs.300-billion) to set up the steel plant and a 750 MW power plant in north Karnataka," Yeddyurappa told reporters.
ArcelorMittal founder and chief executive L.N. Mittal said his team had a constructive and positive meeting with the Karnataka government.
"We look forward to working with the state government as the project progresses. It will be an honour for us to be a part of Karnataka's industrial development," Mittal said in a statement on the company's proposal.
Noting that Karnataka was one of the most progressive states in India and an ideal place to build a world class steel plant, Mittal said the state government understood that India would continue to have a growing demand for steel and was keen to participate in the growth potential.
An ArcelorMittal team, led by board member Sudhir Maheshwari and its India-China chief executive Vijay Kumar Bhatnagar, met Yeddyurappa and state Industries Minister Murgesh Nirani to discuss the project proposals.
The state government has identified the Bellary-Hospet-Koppal region in north Karnataka for a steel industrial city.
"We have shown the team three locations -- Bellary-Hospet, Koppal-Raichur and Dharwad -- for locating the steel plant, as the entire region has abundant mineral reserves, including iron ore for captive mines," Nirani told IANS on the margins of the meeting.
Yeddyurappa said the company has been asked to choose a site suitable to its requirements, as the prestigious project had the potential to create about 10,000 jobs when implemented over the next four-five years.
The state government has assured the company of its full support, including incentives as per its new industrial policy.
"The company has asked for about 4,000 acres of land and infrastructure facilities like road connectivity and other amenities like water," state Chief Secretary S.V. Ranganath said.
The project requires 400 million litres of water per annum. Water can be drawn from the Tungabhadra river that flows through the region or from the Almatti dam across the Krishna river in Bagalkot district.
ArcelorMittal also plans to commence trading in the steel products segment.