India | Posted on May 28, 2008 at 03:36pm IST

Rough weather for Arcelor Mittal plant in Orissa

Keonjhar, Orissa: Yet another mega industrial project maybe running into controversy. This time over steel giant Arcelor Mittal’s plan to build a Rs 40,000-crore plant in Keonjhar district

The POSCO and Tata Steel plants have run into trouble because of protests against land acquisition. Arcelor Mittal's 12-million tonne steel plant project is also being opposed on the same grounds.

People in Keonjhar say that if the project takes off, nearly 15,000 people in 17 villages in the district will be displaced and will lose more than 800 acres of agricultural land.

"We want better irrigation for our agriculture land. We do not want the Arcelor Mittal steel plant, which would take away our land and our livelihood. We are ready to die but would not allow the plant on our land," says Muralidhar Sardar, president of Mittal Pratirodh Manch

Arcelor Mittal signed an agreement with the Orissa government on December 12, 2006. The company requires 8,000 acres of land to produce 20 million tonnes of iron ore per annum. The Orissa government has reportedly committed to help the government.

Arcelor Mittal, on its part, promised to implement the Government's resettlement and rehabilitation policy. "We will implement no doubt implement the government’s resettlement and rehabilitation policy, which is one of the best. We will also emphasise on the corporate social responsibility, which is more long term than that the resettlement and rehabilitation policy. I hope the local people will soon understand this," said Sanak Mishra, CEO of Arcelor Mittal Greenfield projects.

A recent World Bank report said that POSCO, Arcelor Mittal and TATA steel, with their projects in place, would boost the economic development of Orissa. But for that the projects will have to be completed.

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