After a long wait of four years for land in Jharkhand and Orissa, the world’s largest steel-maker ArcelorMittal has decided to begin a search for alternate sites for its $20 billion (about Rs 95,000 crore) green-field steel projects in India.
In a statement from London, Mittal said, “…in the event that land acquisition continues to prove difficult, we will start to search for alternate sites.” However, the steelmaker continues to work on its two projects in Jharkhand and Orissa, it added.
“ArcelorMittal has no plans to quit India. India is an important country for steel demand growth and is an important part of ArcelorMittal’s long-term strategic plans,” Mittal said in the statement after London-based Financial Times reported that he was close to pulling out of two projects in India.
India-born steel tycoon had announced both steel projects with annual capacities of 12 million tonnes each at a time when the global economy was sound and demand for steel was growing. On October 8, 2005, before he acquired Arcelor, the worlds second largest steelmaker, his company Mittal Steel had signed a Memorandum of Understanding (MoU) with the Jharkhand Government for mine development and for building a steel-making complex.
Three months later, the conglomerate signed another MoU with Orissa to set up a plant in Keonjhar district. The London based company was planning to start construction on both projects by the end of this year, with a commissioning deadline of 2014-15. ArcelorMittal sources in India said, the projects would be moved out of Jharkhand and Orissa to other states if land acquisition is delayed further. Delays in persuading farmers and others to sell the land he needs for the developments in the states of Jharkhand and Orissa are “unacceptable”, Mittal told the newspaper.
“If we cannot make progress in these two sites we will have to abandon the idea of starting the projects there and look for other places in India for our expansion,” Mittal added. However, industry experts said it would not be easy to find such locations with iron ore resources in the country and get clearances rapidly.
“The statement also means that ArcelorMittal would divert its investments to other countries,” said a Mumbai-based analyst. Mittal also said that he was still committed to building at least one steel plant in India.
Last month, Mittal, who has very little presence in his motherland, announced his interest in becoming co-promoter in the Indian cold-rolled and galvanized products maker Uttam Galva. ArcelorMittal, which last month struck a deal to acquire 35 per cent in Uttam Galva, said its open offer would begin on October 31 and close on November 19, 2009.
In a statement from London, Mittal said, “…in the event that land acquisition continues to prove difficult, we will start to search for alternate sites.” However, the steelmaker continues to work on its two projects in Jharkhand and Orissa, it added.
“ArcelorMittal has no plans to quit India. India is an important country for steel demand growth and is an important part of ArcelorMittal’s long-term strategic plans,” Mittal said in the statement after London-based Financial Times reported that he was close to pulling out of two projects in India.
India-born steel tycoon had announced both steel projects with annual capacities of 12 million tonnes each at a time when the global economy was sound and demand for steel was growing. On October 8, 2005, before he acquired Arcelor, the worlds second largest steelmaker, his company Mittal Steel had signed a Memorandum of Understanding (MoU) with the Jharkhand Government for mine development and for building a steel-making complex.
Three months later, the conglomerate signed another MoU with Orissa to set up a plant in Keonjhar district. The London based company was planning to start construction on both projects by the end of this year, with a commissioning deadline of 2014-15. ArcelorMittal sources in India said, the projects would be moved out of Jharkhand and Orissa to other states if land acquisition is delayed further. Delays in persuading farmers and others to sell the land he needs for the developments in the states of Jharkhand and Orissa are “unacceptable”, Mittal told the newspaper.
“If we cannot make progress in these two sites we will have to abandon the idea of starting the projects there and look for other places in India for our expansion,” Mittal added. However, industry experts said it would not be easy to find such locations with iron ore resources in the country and get clearances rapidly.
“The statement also means that ArcelorMittal would divert its investments to other countries,” said a Mumbai-based analyst. Mittal also said that he was still committed to building at least one steel plant in India.
Last month, Mittal, who has very little presence in his motherland, announced his interest in becoming co-promoter in the Indian cold-rolled and galvanized products maker Uttam Galva. ArcelorMittal, which last month struck a deal to acquire 35 per cent in Uttam Galva, said its open offer would begin on October 31 and close on November 19, 2009.
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