Mumbai: The world''s largest steel maker Mittal Steel is expected to sign an agreement with the Orissa government for setting up a steel plant at an investment of Rs32,200 crore ($7 billion), within the next two months.

"The MoU would be through once Mittal Steel acquires 3,000 acres of land it has sought from the state government," Orissa minister for steel and mines Padmanabha Behara said, adding that Mittal Steel is likely to use the upcoming port in Gopalpur being built by the Orissa government.

Steel tycoon L N Mittal had in July said that his company would set up a 12-million tonne steel plant in Orissa.

The Orissa government had identified Khallikot in Ganjam, Basudevpur in Bhadrak, Balgopalpur in Balasore and Patna in Keonjhar among seven possible sites for an Arcelor Mittal expert team to speed up the project.

MECON is assisting the global steel giant to select a site for the project.