The steel maker said that the company is making progress on the project and is in the process of acquiring water for the proposed plant, but declined to reveal the amount of land acquired by the firm for the project.
The company is eyeing steel projects in the iron -ore rich state of Karnataka. It is planning to set up a steel plant, having 6 million tonnes per annum capacity in two stages and a power plant having 750 megawatt capacity, catering exclusively to its steel mill. The projected investment for the project is $6.5 billion.
For the project, 4,000 acres of land has already been acquired by the Karnataka Industrial Areas Development Board (KIADB) and the company needs a further 4,500 acres of land for the project, and the firm is confident of getting the land very soon.
But the firm is facing many hurdles such as land acquisition problems and stringent regulations in the set up of each of the two still mills, with 12 million tonnes per annum capacity each, in Jharkhand and Orissa. It had planned to spend $10 billion for each of the two plants.
It had to move the project site from Khunti-Gumla to Bokaro, in Jharkhand due the above problems. The company said that, it is concentrating on smaller projects with investments in the range of $1.5 to $3.0 billion, as the process for clearance is lengthier in larger projects.
View: A land-acquisition bill is not only necessary but it is imperative. The problem of companies first investing a small portion in trying to set up a mill or factory and then having to roll it up and move to a new location in not in the best interests of the country. because a continuous problem will result in flight of capital and companies would be averse to the idea of setting up operations in India. This will create growth problem over a period. And a systematic problem like this will then take years to be corrected.