Mittal’s Jharkand investment hasn’t taken shape yet

JAMSHEDPUR/RANCHI: Lakshmi Mittal is now both Mittal Steel’s and Arcelor’s. Question is: how much is he of Jharkhand? ET did a spot check to find that out even as Mittal and his son Aditya sat down with Joseph Kinsch to address the world press at Luxembourg on Monday evening.

AK Singh, industry secretary of Jharkhand, was bowled around his legs when asked this question. He thought for a while and said : “As far as Mittal Steel’s Jharkhand project is concerned, nothing concrete has been decided as yet.”
Not unusual for a state that had been mercifully sleeping it off, while Mittal was making waves around the world.

A hot slumberous afternoon on the first day of the week wasn’t exactly the time to catch Ranchi on the right foot. Has the CM’s office sent a congratulatory message to Mittal? “Aisa kuch hua hai kya?” was the first incredulous counter question.

Mittal Steel had decided to set up up a 12m tonne steel plant in the state at a capital investment of Rs 40,000 crore. A Memorandum of Understanding (MoU) was also signed accordingly in October ‘05. The state government had drummed up a slogan that said “We Walk Together....” on the day the MoU was signed, but must have apparently forgotten all about the togetherness thereafter, which is why it remained blissfully unaware of Mittal’s Arcelor conquest even on Monday.

Most of the people directly involved in the review of the project, seem to have absolutely no idea of what the latest is. Arjun Munda, chief minister, was not available for his comments.

UK Sangma, principal secretary to the chief minister said Mittal Steel has already set up a corporate team to monitor the project and a registered office as well in Jharkhand. It has not, however, been able to zero in on any specific site.

Mittal Steel representatives in Ranchi have also visited some sites like Kara in Govindpur in Ranchi district, Manoharpur in West Singhbhum district and Ghatshila in East Singhbhum district among others for setting up the proposed steel plant. It has not, however, been able to zero in on any specific site.

If these actions prove the seriousness of the Mittal side, the state government isn’t very impressed. “Mittal Steel has not yet decided on the site for the project” said Mr Sangma. He however added : “We will provide full support to them as and when required.”

The industry lobby in Jharkhand is sharply critical of the apparent lackadaisical attitude of the state. Steel insiders felt that Arjun Munda “needs PR grooming”.

State government sources said that most projects are pending because the resettlement and rehabilitation policy is yet to be finalised. Mittal Steel’s main concern is regarding availability of raw materials like iron ore and coal for its proposed project in the state. It had recently also asked the state government for a comfort letter assuring supply of raw materials. The state has responded merely by promises. Nothing official has been done yet.

The Jharkhand government’s soft pedalling of the Mittal issue has many watchers across the border in neighbouring West Bengal, which is going full steam ahead to attract investment and has also made rapid strides.

Should the proposed project in Jharkhand get jeopardised by any chance, it would be a boon for plenty other state governments — all of whom would now be interested in inviting Mittal to invest in their states.