Day One of GIM grabs investment of Rs 3.29 lakh crore
From Our Special Correspondent
Daijiworld Media Network
BANGALORE, JUNE 3: Day One of the B S Yeddyurappa regime’s mega Global Investment Meet (GIM 2010) was an unprecedented success with the signing of memoranda of understanding (MoUs) for as many as 205 projects with a total investment of Rs 3.29 crore.
The total employment potential of all the investment proposals for which MoUs were signed on Thursday is over 4 lakh jobs.
With GIM 2010 scheduled to conclude on Friday night, Udyog Mitra expects at least another lakh crore rupees worth of investment proposals to reach the MoU signing stage. The large and medium scale industries minister Murugesh R Nirani, who had initially pegged the total investment proposals to be of the order of Rs 3 lakh crore, subsequently scaled up the projections to Rs 4 lakh crore. He, however, had expressed the hope on the eve of the GIM 2010 that the total investment could well touch the Rs 5 lakh crore mark.
The major projects are as follows:
Bhramani industries (K) limited – steel projects Rs. 36,000 Crore.
POSCO (South Korea) - Steel Project – Rs. 32,336 Crore
Arcellor Mittial India limited – Steel project - Rs. 30,000 Crore
Bhusan steel limited – Steel _ 27,928 Crore
Surya Vijayanagar cements – 26,900
Surya vijayangar steels and power – 24,000 Crore
Hazira Steels - 17760 crore
JSW steel – 15132 crore
Luxor energy limited – 9942 crore
Gupta Energy limited – 6887 crore
Adhunik Metallic’s limited – 5568 Crore
Relogistics Infrastructure limited – 6796 Crore
Vishwaraj Infrastructure – 4200 Crore
Shri Renuka Energy limited – 3293 crore
MRPL – 8655 Crore
Rajashree cements limited – 3000 Crore
Kalavati inspit and power -2883 Crore
Infosys technology – Rs. 2250 Crore.
Mittal's steel project in Karnataka to get first priority
Bangalore, June 3 (IANS) World’s largest steelmaker ArcelorMittal will give priority to its steel project in Karnataka, as its two other similar projects in Jharkhand and Orissa are bogged down by land issues and other approvals, a top company official said Thursday.
"If we see that our progress in Karnataka is ahead of others, our steel project in this state will get the first priority," ArcelorMittal chief executive Lakshmi N. Mittal told reporters here.
As the company’s steel projects in the other two states have been hanging fire over the last five years, Mittal hinted that priorities would change depending on the approvals and market development.
"What is happening is priorities will change depending on approvals and market development. Once we have made progress in Karnataka ahead of others, we may start here first and then wait and see what’s happening in the other two states," Mittal said on the margins of the Global Investors Meet (GIM 2010).
Noting that progress on the steel projects in Jharkhand and Orissa was slow, Mittal said the company was facing a lot of issues in connection with land, environmental clearances and protests by civic bodies.
"There are lots of milestones to be achieved before we can say that we are happy with the progress in the other two states. In Jharkhand, we have started working on different land sites in the last few weeks," Mittal said but did not elaborate on the status of the steel project in Orissa.
On his maiden visit to this tech hub, Mittal signed an agreement with the state government to set up a six million tonnes per annum steel plant in the mining district of Bellary, about 300 km from here, at an estimated cost of Rs.30,000 crore ($6.5 billion).
"In Karnataka, we have already got the land allocation and we have been assured by the state government that other requirements will be processed speedily. That is why we believe that the progress here will be better," said Mittal.
Though the state government has allocated water for the proposed steel plant and a captive power plant at the site, the company is yet to have coal linkages.
"We have signed the MoU (memorandum of understanding) with the state government. We are at the preliminary stage of progress. The real progress has to be made now. We are also working with the state-run power corporation for the power project in joint venture," Mittal said.
On securing mining lease, Mittal admitted that its location was a problem and the company had not identified the mining site in the state.
"The mining location is a problem. We are in the process of working with the state government to get the mining lease. That is one of the processes, which have been initiated, but we do not have any license though the process has begun," he said.
The steel baron also agreed that the state had no control over the mines and it can only recommend to the federal government for granting license to the steel project.
Lauding the state government for giving approvals and allocating land for the greenfield steel project within six months of initiating discussions, Mittal said Karnataka had demonstrated a strong commitment to the steel project.
"I am happy and excited because since we have started our discussions with the state government, we have experienced very positive support and attitude of the administration," Mittal added.
In a bid to protect its mineral wealth from exploitation and check export of raw materials like iron one without value addition, the state government has made it mandatory for setting up a steel plant for allotting captive mines in its revised industrial policy of 2009.
Posco relents, to set up steel plant in Karnataka
Bangalore, June 3 (IANS) Korean steel major Posco has signed an agreement with the Karnataka government to set up a six million tonnes steel plant in the state, Major Industries Minister Murugesh R.Nirani said here late Thursday.
"Posco officials have signed a memorandum of understanding (MoU) with the state government to set up a steel plant in the state at a cost of Rs.30,000 crore (Rs.300 billion/$6.4 billion) without insisting on captive mines," Nirani told IANS on the margins of the second Global Investors Meet (GIM 2010).
Posco is the second global major to enter Karnataka after the world's largest steelmaker ArcelorMittal signed a similar agreement to set up a six million tonnes per annum plant in the state for the same investment (Rs. 300 billion).
"Though Posco earlier insisted in writing for captive mines, land, water and power before clearing its project, it relented after we prevailed on it to first sign the agreement on the terms and conditions that were applied to ArcelorMittal and other steel firms," Nirani clarified.
As in the case of ArcelorMittal in Jharkhand and Orissa, Posco too has been facing opposition to its 12-million tonnes per annum steel plant in Orissa's Jagatsinghpur district over the last five years due to stiff opposition from farmers and locals on acquiring their fertile lands.
"We have explained to Posco officials that as per our revised mining policy, captive mines will be allotted only if a steel plant is set up in the state. Under the Indian Mining Act, it is the central government which has to grant license to captive mines. We are ready to recommend Posco as we have done in the case of ArcelorMittal and other steel firms," Nirani said.
Posco, however, will be allocated land in Bagalkote district of north Karnataka, with water supplied from the Almatti dam across the Krishna river to set up its steel plant in five years.
"As we have already allocated about 4,000 acres of land in Bellary district to ArcelorMittal and are in the process of allocating land for other firms setting up smaller steel plants, we have told Posco to locate its greenfield plant in Bagalkote district," Nirani added.