ArcelorMittal has decided to scrap its Rs 50,000 crore, i.e $ 12 billion steel plant in Odisha, this is the biggest foreign investment pullout from India.
The world’s largest steel maker took this decision due to delays in land purchase and obtaining mining leases.
Vijay Bhatnagar, Executive Vice President and member of the Management Committee, CEO of India and China for ArcelorMittal, said “Over the last seven years we have invested considerable resources into this project. However, the delays relating to land acquisition and allocation of captive iron ore blocks means this project is no longer viable.”
In 2006, ArcelorMittal had signed a memorandum of understanding (MoU) with the Odisha government to set up a 12 million tonne steel plant in four phases at Keonjhar, entailing an investment of $12 billion (Rs 50,000 crore). The MoU was due for renewal since December, 2011.
Since the announcement of the project, the company said, that it had completed important milestones such as the completion of a feasibility report, an environmental impact assessment study and other relevant technical reports. Besides, it also holds eight gram sabhas (public hearings) and invested in a number of corporate social responsibility (CSR) projects, it added.
However, the company will continue to pursue its other two projects in Jharkhand and Karnataka.
Source – PTI