ArcelorMittal finally calls it quits at Khunti-Gumla in Jharkhand

<http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/ArcelorMittal-finally-calls-it-quits-at-Khunti-Gumla-in-Jharkhand/articleshow/5695294.cms#write>
Text:
    RANCHI: ArcelorMittal has finally called it quits at Khunti-Gumla in
Jharkhand where it had originally decided to set up a 12-mtpa greenfield
steel
[image: ArcelorMittal] <javascript:openslideshow('/slideshow/5695298.cms')>
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project at an estimated cost of Rs 50,000 crore. That was way back in 2005
when the MoU was signed, followed by the site selection a year later.

Unfortunately, the selection ran into rough weather as tribals in the area
refused to part with land. The company had come up against a wall of
protests, so much so that its representatives couldn’t even hold a single
meeting with villagers as tribals simply refused to parley.

The impasse had forced the company to scout for other areas and it
fortunately found some at Bokaro. Negotiations are still on, but apparently
some 1000 acres have been sourced from about 200 villagers who have
consented to sell their land. A meeting to this effect was held at Petarwar
last month. On Wednesday, ArcelorMittal formally sent a communication to the
government announcing the relocation of its project from the Khunti-Gumla
area to Bokaro.

This was confirmed by Jharkhand industries director, Aradhana Patnaik, who
told ET that the company has indeed sent the communication to the state
government. "We have received the letter regarding shifting of the project.
Now the government will extend all support to the company to set up its
plant at the new site," she said.

Ms Patnaik said the company has also requested the water resources
department for 45 million cubic metres of water from the Tenughat dam to
cater to the requirements of the proposed plant which will be of 3 mt
initially.

The company also plans to start purchasing the land soon after it gets
clearance from the water resources department. In the meantime, according to
a company official, the process of negotiations with the villagers will
continue.

According to Ms Patnaik, the company should create a favourable condition in
the area by taking up steps under the corporate social responsibility (CSR)
in order to win the trust of the people, which is very important for the
project to kickstart.
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/ArcelorMittal-finally-calls-it-quits-at-Khunti-Gumla-in-Jharkhand/articleshow/5695294.cms

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