The Chief Minister of Karnataka B. S. Yeddyurappa met Steel icon Lakshmi Mittal in New delhi today. CM offered two sites for the proposed Rs 30,000 crore six million ton steel plant in the state to the chief of global steel firm.

The Chief Minister and Industries Minister Murugesh Nirani for the South Indian state honored Lakshmi Mittal at Karnataka Bhavan in New Delhi. Mittal's official proposed three sites for the steel plant to come up in a peace of land not smaller than 4,000-acre. The plant is expected to create 10,000 direct jobs. The firm also plans a 750-MW captive power plant on this land. Yeddyurappa also invited Mittal to be the chief guest at the Global Investors Meet in Bangalore in June this year.

After meeting with the Steel major, Mr Yeddyurappa said, "The representatives of ArcelorMittal have been shown two locations at Bellary and Bijapur. We will issue all clearances within 90 days after they decide on the location."

Mr. Mittal was impressed with state's assurances and promises and indicated that an MOU could be signed with months.

Earlier the firm had plans to set up plants in Orissa and Jharkhand however there were obstacles in the form of land acquisition issues and delays in regulatory approval. With an investment plan of over Rs 1 lakh crore, Mr. Mittal assured that despite the slow progress in the projects the firm has no plans to quit.

This week also saw the steps that would result in the creation of almost one lakh jobs as the state government gave in-principle clearance for 38 projects worth Rs 1,38,000 crore.

The state wants to project itself as the steel state, is wooing major steel companies from home and abroad. About 90,000 acres have been identified in the state which has started the acquisition process as the government looks to have a land bank of 40,000 acres.

Surya Vijayanagar Steels and Power's proposed Rs 20,000-crore steel plant and two gas pipeline projects of Relogistics Infrastructure and Gas Authority of India Ltd were granted clearances recently.

Tata Steel with a five MT project proposal and world's fifth largest steel firm from South Korea, Posco's proposed six MT project are both looking seriously to invest in the state. The Jindals earlier had the clearance for a 4 MT capacity plant, are now planning to raise capacity to 16 MT. North Karnataka has also interested two other firms who are looking into setting up plants.

Mr Murgesh Nirani, the Industry Minister said "As part of its plans to improve the infrastructure, Karnataka has called for an expression of interest to set up a port at Tadri. The State plans to set up a special industrial zone for steel in districts in districts such as Bellary, Koppal, Raichur, Bagalkot and Haveri."