Global steel giant ArcelorMittal is reported to be planning to enter the lucrative electricity generation business in India, possibly by setting up thermal power plants, to begin with.
The Lakshmi Mittal-led group already has a small presence in the power sector in the country. LNM India Internet Ventures holds an 8.79-per cent stake in Indiabulls Power, which is developing a 6000 MW thermal power project in India, reports quoting sources close to the developments said.
The report, however, did not elaborate on the capacity, location or type of project.
ArcelorMittal, meanwhile, is reported to be looking at captive power plants, possibly for its steel project. The company is likely to set up power plants to cater to the power needs of its proposed steel manufacturing facilities in India.
ArcelorMittal, which is setting up two steel plans of 12 million tonne capacity in India is expected to set up upstream projects in Jharkhand, Orissa and Karnataka, based on thermal coal linkages.
Currently, almost all private sector steel manufacturers in the country, including the Tatas, the Essar group and Jindals, are present in the power generation business as well.
In ArcelorMittal's case, however, its plan for setting up mega steel plants in India have not fructified due to delays in land acquisition and grant of mining leases.