The world's largest steelmaker ArcelorMittal on Wednesday scrapped its Rs 50,000-crore steel plant project in Odisha due to inordinate delay in acquiring land and securing iron ore linkages.
The developement came just a day after South Korean steel major Posco pulled out of its Rs 30,000-crore project in Karnataka and the Central Government widened its doors to foreign direct investment for a dozen sectors.
lakshmi Mittal-headed ArcelorMittal's proposed plant in Odisha was among the biggest foreign direct investments India has attracted. Two other projects, Rs 52,000-crore steel plant of Posco in Odisha and Rs 50,000-crore steel plant of ArcelorMittal in Jharkhand are the largest FDIs in the country. And both the projects are also facing inordinate delays.
ArcelorMittal officials on Wednesday met Odisha Chief Secretary to inform him that the company has decided not to proceed with its projects of steel plant and captive power plant in the district of Keonjhar, the company sources said.
However, the company will continue to pursue its other two projects in Jharkhand and Karnataka, the sources said, adding that these two projects are making steady progress.
ArcelorMittal had signed an MoU with the Odisha Government to set up a 12-million-tonne steel plant in four phases in Keonjhar.
"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 mean this project is no longer viable," said Executive Vice-President and member of the Management Committee, CEO of India and China for ArcelorMittal Vijay Bhatnagar.
For ArcelorMittal, the progress in Karnataka has been much better, where the land acquisition has been completed and the company is now waiting for securing iron ore linkages. The company has plans to set up a 6-million tonne steel plant in the State for about Rs 30,000 crore along with a captive power plant, the company sources said.
The firm has also made some headway in Jharkhand where part of the required land has been acquired. Besides, it is also prospecting iron ore mines in Karampada region of the State.