Bhubaneswar: Deviating from its MoU with the Orissa government, world's largest steel maker Arcelor-Mittal has sought 750 acre of additional land to set up its proposed 12 million tonne greenfield steel plant in the state.

Government officials said they were in a dilemma over the fresh request especially since residents of Keonjhar district, where the plant was to be set up, were opposed to the project.

"We received a letter from the company seeking more land even after Arcelor-Mittal's top executives assured that they would go by the MOU on land requirement," an official said.

They said the steel major had agreed for 8,000 acre of land for setting up its plant, captive power plant, township and the proposed rehabilitation colony.

According to the MoU, the company required 6,000 acre of land for the steel plant, 1,000 acre for its captive power plant and rest 1,000 acre for township and rehabilitation.

"We are prepared to provide 7,000 acre of land for steel plant and captive power plant in the first phase and remaining 1,000 acre for township and rehabilitation later," Managing Director of state-owned Industrial Promotion and Investment Corporation of Orissa Ltd (IPICOL) A K Meena told.

But the fresh request letter sought 7,750 acres of land in first phase for the steel plant and captive power plant, he said, adding, "we cannot take any decision regarding allotment of extra land. The government has to decide on this".

Sources said fresh demand for extra land was made in accordance with a report prepared for Arcelor-Mittal's Orissa project.