Mittal Picks Andhra Over Karnataka for Mega Steel Plant

Steel giant ArcelorMittal has decided to shift to Andhra Pradesh, setting aside its plans chalked out in neighbouring Karnataka. The company representatives reportedly felt Karnataka was not giving importance to their plans and vision. In such a situation, the red carpet laid out by the TDP-led NDA government in Andhra Pradesh, for investors has impressed the company authorities.

In 2010, the previous government allocated 12,500 acres of land for setting up industries near Kuditini in Bellary district, Karnataka. The land was acquired by Yeddyurappa’s government through the KIADB. Of this, Mittal bought 2,643 acres, spread in Kuditini, Veniveerapuram, Haraginathoni, Kolagallu, Raramgavi, Jaanakunta, Siddamanahalli. Of the remaining land, 4,800 acres was allocated to Uttam Galwa, and 2,850 acres to NMDC. Since then, there had been no incentivization for the companies to establish their units and the projects remained non-starters. With none of the companies starting the construction works in the allocated sites, ArcelorMittal has withdrawn its proposal to establish its unit there.

At the same time, the encouragement and incentives being offered by the TDP government in neighbouring AP was identified by the company authorities and a decision was taken to set up the steel factory near Vizag.

A couple of days ago, ArcelorMittal announced its decision on a shift in their plans. The AP officials are also focused on making the process of business establishment easy to attract more investments into the state.