ArcelorMittal looks for new site in J'Khand

ArcelorMittal looks for new site in J'Khand

ArcelorMittal had applied for about 11,000 acres in Khunti and Gumla districts, but the government has offered 1,025 acres. Opposing the government move, the Manch chief activist, Dayamani Barla, explained that the Manch's opposition was "in line with the sentiments of the people of the area". 

She said: "We are not ready to give an inch of land to the project and our agitation will continue till the company formally announces its pullout from the area. Till now, there has been no word from the company or the government." 

23 Sep 2009, 0222 hrs IST, Navtan Kumar & Rakhi Mazumdar, ET Bureau
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RANCHI/KOLKATA: Facing stiff resistance from villagers in Khunti and Gumla of Jharkhand, ArcelorMittal is understood to be seriously

contemplating some alternative site for its ambitious 12-mtpa project in the state.

No decisions have been taken so far, but sources said all options are being kept open. ET had got in touch with Sudhir Maheshwari, member of ArcelorMittal's group management board, which is responsible for M&A and business development, on the issue.

In reply, the company stated: "We remain committed to our current site in Jharkhand, but we will always consider other back-up options to ensure project completion. A series of pro-active CSR programmes is being carried out in the area focusing on health, education, capacity building and livelihood."

As intense anti-project protests continue, spearheaded by the Adivasi Moolvasi Astitiva Raksha Manch, state industry secretary NN Sinha said any company facing such a stalemate situation would consider an alternative site definitely. He clarified that no formal communication from ArcelorMittal's side had been received yet.

Speaking to ET, Mr Sinha said: "Senior company officials have been assuring us that they remain committed to the Jharkhand project. We also have information that the company has been doing several activities under the corporate social responsibility (CSR) programme. But the fact that they have made little headway on the land acquisition front might force them to shift to some other location." Company sources here said: "The MoU with the state government was signed in 2005, but till now we have not got land. In this situation, there is no harm in keeping an eye open for some other option."

Meanwhile, there is speculation that the alternative, if at all, could be somewhere in the Seraikela-Kharsawan, East Singhbhum or West Singhbhum districts. These areas too were apparently shortlisted by the company initially and are home to a large number of industrial units, including those of Tata Steel.

ArcelorMittal had applied for about 11,000 acres in Khunti and Gumla districts, but the government has offered 1,025 acres. Opposing the government move, the Manch chief activist, Dayamani Barla, explained that the Manch's opposition was "in line with the sentiments of the people of the area".

She said: "We are not ready to give an inch of land to the project and our agitation will continue till the company formally announces its pullout from the area. Till now, there has been no word from the company or the government."

So, till the company formally moves on to any alternative site or the Manch decides to budge, the stalemate is likely to continue.