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ArcelorMittal today said exodus of its employees, including CEO for Greenfield Projects Sanak Mishra, will not impact projects in Jharkhand and Karnataka.
The world’s largest steel-maker said it has the right team to execute the two projects.
“As we have made slower than anticipated progress with our India projects, the requirement for the number of people on the ground has reduced. This does not impact our ability to continue to work on our two remaining projects in Jharkhand and Karnataka,” the company said in a statement.
“Under the leadership of Vijay Bhatnagar, CEO of ArcelorMittal India and China, we are confident we have the right team required for the projects at this point in time,” ArcelorMittal spokesperson said in the statement.
The response came a day after PTI reported that about 20 top executives of ArcelorMittal India were leaving the company due to frustrations of having little or no work as company’s projects have failed to take off so far.
The biggest exit was that of Sanak Mishra, whose last working day was July 31.
Last month ArcelorMittal had exited Odisha project, while the other two projects in Jharkhand and Karnataka, involving $18 billion investments, are facing delays on different counts.
Many former and present executives of ArcelorMittal had said earlier that after the company’s exit from $12 billion Odisha project they were not expecting any major progress in Jharkhand and Karnataka projects due to several issues.
This included regulatory hurdles, problems in acquiring land, securing captive iron ore mine and ArcelorMittal’s constrained ability in proceeding ahead with mega investments in the times of continuous slump in global steel demand, they had said while talking about there exits.
Besides Mishra, ArcelorMittal’s Head of Corporate Responsibility Sudhir Sinha and Head of Corporate Communications Mandakini Sud and Head (HR) had left the company some months ago.
Its General Manager (Mines) in Jharkhand S P Prayaga was deputed to Liberia in the same capacity some time back while the team, working for Odisha project, is now disbanded.
Its entire Corporate Communications team had quit in December last year.
The company has even surrendered a major portion of the office space at its corporate office in the national capital.
In Jharkhand, the company has not been able to complete land acquisition for its 12 million tonnes steel plant, which was announced way back in 2005.
In Karnataka, where land acquisition is complete for the 6 million tonnes project, the company has not been able to secure captive iron ore mine.
Due to this, there has not been much progress on the ground.
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