The world’s largest steelmaker, ArcelorMittal has decided to scrap its planned 12- million-tonne steel project in Odisha citing “significant external delays” in acquiring land and ensuring captive supply of iron ore.
The decision comes a day after South Korean steel giant Posco pulled out of a $5.3-billion steel project in Karnataka due to similar problems of delay in land acquisition and other clearances. But Posco has vowed to continue with its 12-million-tonne steel project in Odisha. ArcelorMittal had planned an investment of Rs.40,000 crore for the Odisha project. The company said it will continue its projects in Jharkhand and Karnataka. The two moves come close on the heels of the government’s decision to open up nearly a dozen sectors, including defence, to greater foreign participation in a bid to attract capital and plug a yawning CAD.
Indian industry is in the midst of a prolonged slowdown hit hard by sliding demand, high interest rates, stubborn input costs and a slowing global economy. Experts said that the steel sector globally is facing a slowdown due to declining demand. They said the pulling out of Posco and ArcelorMittal from the two projects is unlikely to have a major impact on the sector.
The decision comes a day after South Korean steel giant Posco pulled out of a $5.3-billion steel project in Karnataka due to similar problems of delay in land acquisition and other clearances. But Posco has vowed to continue with its 12-million-tonne steel project in Odisha. ArcelorMittal had planned an investment of Rs.40,000 crore for the Odisha project. The company said it will continue its projects in Jharkhand and Karnataka. The two moves come close on the heels of the government’s decision to open up nearly a dozen sectors, including defence, to greater foreign participation in a bid to attract capital and plug a yawning CAD.
Indian industry is in the midst of a prolonged slowdown hit hard by sliding demand, high interest rates, stubborn input costs and a slowing global economy. Experts said that the steel sector globally is facing a slowdown due to declining demand. They said the pulling out of Posco and ArcelorMittal from the two projects is unlikely to have a major impact on the sector.
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