The world’s largest steel maker ArcelorMittal has decided to scrap the 12-million-tonne-a-year plant in Odisha following delays in getting land and securing captive iron ore resources.

Top company executives met Odisha’s Chief Secretary on Wednesday to inform him that the company has decided not to go ahead with its planned construction of an integrated steel plant and captive power plant in Keonjhar district. The announcement comes days after South Korea’s POSCO said it was pulling out from building a Rs 30,000-crore 6 mtpa steel project in Karnataka’s Gadag district after waiting for four years to get land.

ArcelorMittal had signed a memorandum of understanding (MoU) with the Odisha Government in December 2006. It had completed various milestones, including the feasibility report and environmental impact study.

Explaining the decision, a company statement said, “Unfortunately, the project has faced significant external delays. Therefore, taking into account the current economic climate, ArcelorMittal has concluded it will no longer be pursuing its plans for a steel plant in Keonjhar at this stage.” This announcement does not affect ArcelorMittal’s plan to pursue its two other Indian projects in Jharkhand and Karnataka.

Vijay Bhatnagar, executive vice-president and member of the management committee, CEO for India and China, said: “Over the last seven years we have invested considerable resources into this project; however, delays mean this project is no longer viable. “

thomas.thomas@thehindu.co.in

Related Topics
comment COMMENT NOW