South Korea-based Posco, the world’s fifth largest steel maker, has deposited an initial installment of Rs.60 crore with the state government of Karnataka, thereby committing itself to the Rs.32,336-crore integrated steel plant in the state.
The state government will use the fund to compensate the farmers, who are offering their lands for the project. With this, Posco has joined the list of companies including ArcelorMittal, which have deposited funds, showing the green signal for the state government to proceed further with the land acquisition process. Karnataka minister for large and medium scale industries Murugesh Nirani said, “Posco has deposited Rs.60 crore with the state government as first installment to initiate preliminary land acquisition procedure.”
They have seen sites in three districts in the state namely Bagalkot, Koppal and Gadag. Very soon, he said the official team from Posco will visit Karnataka to finalise the site location, after which the state government will notify the land for acquisition. “We have asked Posco to choose the site in districts other than Bellary,” he said. This is to avoid pollution in the mining district of Bellary and expand industrial activities in other districts, he added.
However, these three districts are located adjoining Bellary, which has rich iron-ore content. Already JSW has 7-mtpa capacity steel plant in Bellary district, where ArcelorMittal will also set up their greenfield Rs.30,000-crore steel facility. KIADB would acquire 5,000 acres for Posco, which would build 6 mtpa integrated steel plant with 400 mega watt (mw) captive power generation station with an investment of Rs.32,336 crore.
The proposed steel facility would require power of 2.30 lakh kilovolt-amphere (kVA) and 2-lakh kilo litre per day of water, said an official attached to Karnataka Udyog Mitra, the state-owned single window agency involved in industrial promotions in Karnataka.
Earlier in January, the steel giant has agreed to its steel manufacturing facility in Karnataka. But the company had put a condition on the government to sanction captive mines before setting-up the plant. The state government has not accepted for it, resulting in the company withdrawing its investment proposal within a month.
However, the company has singed an MoU with the government in the Global Investors Meet (GIM) held in June to invest in Karnataka. Already, ArcelorMittal has deposited Rs.267 crore with the Karnataka Industrial Area Development Board (KIADB) for acquiring 4,000 acres from the farmers in Kudithini village in Bellary district. The total compensation to be paid by Arcelor Mittal is estimated at Rs.350 crore.
The state government will use the fund to compensate the farmers, who are offering their lands for the project. With this, Posco has joined the list of companies including ArcelorMittal, which have deposited funds, showing the green signal for the state government to proceed further with the land acquisition process. Karnataka minister for large and medium scale industries Murugesh Nirani said, “Posco has deposited Rs.60 crore with the state government as first installment to initiate preliminary land acquisition procedure.”
They have seen sites in three districts in the state namely Bagalkot, Koppal and Gadag. Very soon, he said the official team from Posco will visit Karnataka to finalise the site location, after which the state government will notify the land for acquisition. “We have asked Posco to choose the site in districts other than Bellary,” he said. This is to avoid pollution in the mining district of Bellary and expand industrial activities in other districts, he added.
However, these three districts are located adjoining Bellary, which has rich iron-ore content. Already JSW has 7-mtpa capacity steel plant in Bellary district, where ArcelorMittal will also set up their greenfield Rs.30,000-crore steel facility. KIADB would acquire 5,000 acres for Posco, which would build 6 mtpa integrated steel plant with 400 mega watt (mw) captive power generation station with an investment of Rs.32,336 crore.
The proposed steel facility would require power of 2.30 lakh kilovolt-amphere (kVA) and 2-lakh kilo litre per day of water, said an official attached to Karnataka Udyog Mitra, the state-owned single window agency involved in industrial promotions in Karnataka.
Earlier in January, the steel giant has agreed to its steel manufacturing facility in Karnataka. But the company had put a condition on the government to sanction captive mines before setting-up the plant. The state government has not accepted for it, resulting in the company withdrawing its investment proposal within a month.
However, the company has singed an MoU with the government in the Global Investors Meet (GIM) held in June to invest in Karnataka. Already, ArcelorMittal has deposited Rs.267 crore with the Karnataka Industrial Area Development Board (KIADB) for acquiring 4,000 acres from the farmers in Kudithini village in Bellary district. The total compensation to be paid by Arcelor Mittal is estimated at Rs.350 crore.
Next Story
