ArcelorMittal to continue steel projects in India
ArcelorMittal, the world’s largest steel producer, states that it will press ahead with plans to build two steel plants in Jharkhand and Orissa despite the Tata Motor’s factory construction in nearby state, West Bengal, has been halted by the protest.
West Bengal and Orissa, states with high work forces in agriculture, have taking a vow to protest against industrialization. Korean steelmaker Posco, which plans to build a 12m t/y steel plant and a port in Orissa, has faced violent protests and even kidnapping after it started its plan to acquire thousands of acres for its project.
ArcelorMittal had signed MoU with the state governments of Jharkhand and Orissa in 2005 and 2006 respectively to setup a steel plan in each state. But both projects have been delayed due to holding back of mine allocation. The company told the delay in getting mining licenses has raised project cost by more than 50% from initial cost of $20 billion and more delay will up the cost further.
However, the ArcelorMittal determines to continue a dialogue with the state governments of Jharkhand and Orissa to accelerate the mine allocation. In the mean time, the company is considering other opportunities in the steel business including distribution of steel product before steel production start.
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