Friday, 25 Feb 2011PTI reported that peeved at little progress made in its big ticket India projects, the world's largest steel producer, ArcelorMittal is now evaluating options of building small plants in the country with an investment of USD 1.5 to USD 3 billion each.
ArcelorMittal in its annual report for 2010 said that “The company in the medium term intends to take a modular approach and also evaluate smaller projects in various Indian states, with potential individual investments estimated in the USD 1.5 to USD 3.0 billion range.”
The company said the decision is based on implementation challenges associated with large Greenfield projects. It also wants to diversify its initiatives in India.
ArcelorMittal had announced plans to set up 12 million tonnes per annum integrated steel plants in Jharkhand and Orissa at an estimated cost of over USD 10 billion each. In June 2010, The company had inked a pact with the Karnataka government for a 6 MTPA plant with a captive 750 MW power plant, at an estimated investment of INR 30,000 crore (USD 6.5 billion).
However, none of the projects could take off due to regulatory and other hurdles like land acquisition, raw material security etc. Faced with land acquisition problems, the company even had to shift the site of the proposed project to Bokaro in Jharkhand from Khunti-Gumla.
The company said that "Implementation of these projects has been delayed for various reasons, including challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals.”
ArcelorMittal in its annual report for 2010 said that “The company in the medium term intends to take a modular approach and also evaluate smaller projects in various Indian states, with potential individual investments estimated in the USD 1.5 to USD 3.0 billion range.”
The company said the decision is based on implementation challenges associated with large Greenfield projects. It also wants to diversify its initiatives in India.
ArcelorMittal had announced plans to set up 12 million tonnes per annum integrated steel plants in Jharkhand and Orissa at an estimated cost of over USD 10 billion each. In June 2010, The company had inked a pact with the Karnataka government for a 6 MTPA plant with a captive 750 MW power plant, at an estimated investment of INR 30,000 crore (USD 6.5 billion).
However, none of the projects could take off due to regulatory and other hurdles like land acquisition, raw material security etc. Faced with land acquisition problems, the company even had to shift the site of the proposed project to Bokaro in Jharkhand from Khunti-Gumla.
The company said that "Implementation of these projects has been delayed for various reasons, including challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals.”
(Sourced from PTI)
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