A day after Karnataka government announced about Rs 350 crore compensation to be paid by steel major ArcelorMittal for land acquired for its Rs 30,000 crore project in the state, the farmers staged protests demanding higher compensation.

"About 500 farmers in Bellary staged protests against the prices fixed by us for land acquired for ArcelorMittal's project. The farmers are demanding Rs 50-60 lakh an acre against Rs 8 lakh-Rs 16 lakh an acre fixed by us," Deputy Commissioner Bellary B Shivappa told PTI over the phone.

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"We are holding meeting with the farmers to convince them over pricing issue. We have fixed the prices on the basis of distance of land from National Highways," State's Principal Secretary Industries VP Baligar told PTI.
    
While the price of land within 500 metres of NH 17 has been fixed at Rs 16 an acre, the stretches beyond it have been rated at Rs 12 lakh per acre and Rs 8 lakh per acre, he said.
    
Baligar added that nearly 4,000 acres of land has already been acquired for the project and the compensation would be disbursed among nearly 1,000 farmers as soon as they agree over the prices.
    
The steel major has already deposited Rs 267 crore with the Karnataka Industrial Area Development Board (KIADB) and would soon pay the remaining, he said, adding, "We expect to accomplish physical transfer of land to ArcelorMittal soon."
    
"We have reached an understanding on the price for land and expect to get its possession soon. This is a significant progress on the project," ArcelorMittal spokesperson said, adding that the ground breaking ceremony would take place soon after physical transfer of land.
    
The company has been struggling to launch its proposed Rs 1 lakh crore steel projects in Orissa and Jharkhand (12mpta each) for about five years now.
    
The projects have been stuck due to regulatory hurdles and problems in land acquisition and it has been scouting for investment in other destinations.

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