Who will get Mittal's pie - Jharkhand or Orissa?

Binita Jaiswal
&
Akshaya Kumar Sahoo
Bhubaneswar, Dec. 20: Will Arcelor-Mittal really come to Orissa? Or is this a tactical move against Posco? This question has been revolving around the bureaucratic circle, even as speculation ran high in the state secretariat that the company would sign memorandum of understanding with the state government this week.

One message that is doing round here that Arcelor Mittal would be signing the MoU with the Orissa government for 12-million-tonne-steel plant at Keonjhar. But the chronology of the event is quite interesting. The message has started taking its momentum after Posco chief met the Orissa chief minister Navin Patnaik earlier last week.

It may be recalled that Arcelor-Mittal chief L.N. Mittal visited Orissa just after Posco chief showed displeasure over the development on land acquisition for Posco plant in Orissa.

On Monday, Creative Port Development Pvt Ltd (CPDPL), a private port developer has signed the MoU with the Orissa government for developing a port on Subarnarekha River at Kirtania. It may be also recalled that earlier the chief secretary of Jharkhand visited Orissa and met chief minister Mr Patnaik for the same. And in July, CPDPL made a presentation before the then Jharkhand chief minister Arjun Munda and government officials in Ranchi.
Jharkhand is planning to construct a small river port in collaboration with Orissa to offer better transportation to its industries. Jharkhand officials last month met their counterparts in Orissa and discussed the project on Subarnarekha river along the state's borders as the Jharkhand government is keen to complete construction by 2009 when most of the planned steel companies like Arcelor Mittal are expected to start functioning. The government believes that the port will help Jharkhand earn revenue of Rs 2000 crore per annum in the form of taxes.

Earlier, Arcelor-Mittal had asked the state government for arranging a port for the company over Subarnarekha so that they can speed up the construction work. Now as there is a port planned that by CPDPL, Mittals have a minimal chance to say no to Jharkhand government.
In the Kirtania port, as per sources, Mittals would be getting exclusivity. However, in Orissa, the company would be using the Paradip port or the Dhamara Port. While the Paradip port would not be viable as it would be costlier for logistic supply, Dhamara won't be a good choice, as rival Tata Steel would control it.
Arcelor Mittal's plant is becoming one of the most interesting points in the steel surge of Orissa. The company has asked for 8,000 acre for its plant in Orissa. While the prime opposition political party was furious when Posco has asked for 5,000 acre for its 12 million ton plant in Paradip. There would be likely opposition to Mittal's proposal.
Mittal project, as speculated in industrial circles, is most likely to come up at a place in and around Patna in Keonjhar district, but the exact location remains to be worked out. The proposed greenfield project, going by the draft MoU, would be set up in two phases of six MTPA each. The first phase would see an investment of Rs 22,000 crore and shall be scheduled for commissioning in 2010.