ArcelorMittal plans to set up steel plant in Karnataka

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, state 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.

An ArcelorMittal team, led by board member Sudhir Maheshwari and its India and China chief executive Vijay Kumar Bhatnagar, met the chief minister 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 the proposed steel industrial city.

The team was shown three sites in the region, which has abundant resources of iron ore and other minerals.

'We have told the company to choose a site suitable for its requirements as the prestigious project is set to create about 10,000 jobs when implemented in the next four-five years,' Yeddyurappa said.

The state government has assured the company of its full support and 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,' state Cabinet Secretary S.V. Ranganath said.

ArcelorMittal also plans to commence trading in the steel products segment.

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