Ranchi, Feb 22 (IANS) Steel giant ArcelorMittal is looking for an alternative site in Jharkhand to set up a 12 million tonne greenfield plant after it faced difficulties in the earlier selected site straddling Khuti and Gumla districts, an official said Monday.

The company representatives visited villages in Bokaro district Sunday and interacted with residents of Kasmar block, assuring them of good compensation if they agreed to be displaced for the plant.

'We are exploring various sites in Jharkhand to set up a greenfield steel plant. We are facing lots of difficulties in Torpa and Kamdara areas, earlier selected for the steel plant,' ArcelorMittal Jharkhand steel project general manager P.S. Prasad told IANS.

'We went to Bokaro at the invitation of the villagers and got a good response. We have informed the company about the positive response of the villagers,' he said.

ArcelorMittal signed an MoU with the state government in 2005 to set a steel plant with an investment of Rs.40,000 crore. The company has been allocated iron ore mines and coal block but is facing difficulties to get land in the area bordering Khuti and Gumla districts.