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Ambarish Mukherjee

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New Delhi, July 8 Two of the largest steel projects in the country – ArcelorMittal in Jharkhand and Posco in Orissa – are unlikely to take off before 2010, by when they were originally supposed to start production.

This is because both the projects have not been able to acquire any land, either for their plants or for their mining operations.

According to sources involved with the projects, a major cause of delay in land acquisition is due to objections raised by NGOs at public hearings. As things stand now, the projects will only make some progress in the next one year, hence the companies will not be able to stick to their original production targets, a senior Government official said.

“It will take four years from the beginning of ground preparation till the new greenfield plant commences production. So even if the company begins work today it will be mid 2012 when the production will start,” the source said.The MoU between Posco and Orissa Government was signed in June 2005, while the Mittals entered into an agreement with the Jharkhand Government in October the same year.

After inking the MoU, Posco had announced that it would start constructing the plant in 2007 and would commence production in 2010. The plant’s initial capacity was slated for 3 million tonnes of steel slabs annually.

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