Karnataka: Inactive government may force Arcelor-Mittal out

Hubballi: Will steel behemoth Arcelor-Mittal go the way of Hero MotoCorp and abandon Karnataka for a more industry-friendly state?

That’s the question haunting the minds of elected representatives and chamber of commerce and industries in Hubballi-Dharwad. They blame it on the lack of pro-active measures by the state government to attract Arcelor-Mittal which is keen on setting up its steel plant in the twin cities.

Hero MotoCorp, the two-wheeler major wanted to set up its plant in Hubballi-Dharwad but then abandoned Karnataka to set up its unit in Andhra Pradesh. Authorities of Roland Verger Strategy Consultants Private Limited, technical advisor to Arcelor-Mittal, have already visited Hubballi-Dharwad to search for land required for setting up the proposed steel plant. Representatives of Karnataka Chamber of Commerce and Industry (KCCI) have shown them three locations on the outskirts of the twin cities for the plant. They have furnished all information with regard to availability of basic infrastructure to the steel giant which proposes to invest Rs 5,000 crore.

They have also brought these developments to the notice of Chief Minister Siddaramaiah and KIADB officials. But Mr Siddaramaiah claimed he is not aware of the proposed steel plant, saying the company has not approached the state government, said sources.

“Arcelor-Mittal is keen to set up its steel plants in various states including Karnataka. But, the progress in setting up the plant in Karnataka is very slow compared to other states. The company may move out if the government continues to be negligent. We will take a delegation to the CM and urge him to attract the steel plant by offering special incentives. This will help eradicate unemployment in the region,” KCCI president Vasant Ladwa said.