ArcelorMittal to scrap planned steel plant in Odisha

The project is no longer viable due to delays relating to land acquisition and allocation of captive iron ore blocks, says the firm

Reuters
Updated18 Jul 2013, 12:34 AM IST
ArcelorMittal, the world&#8217;s largest steelmaker, will scrap its planned 12 million-tonne-a-year steel plant in Odisha. Photo: Bloomberg<br />
ArcelorMittal, the world&#8217;s largest steelmaker, will scrap its planned 12 million-tonne-a-year steel plant in Odisha. Photo: Bloomberg(Bloomberg)

New Delhi: ArcelorMittal, the world’s largest steelmaker, said it would scrap its planned 12 million-tonne-a-year steel plant in Odisha as it has not been able to acquire the requisite land and a captive iron ore mine.

add_main_imageThe withdrawal comes a day after South Korea’s POSCO said it was ditching a project to build a 6-million tonne-a-year plant in Karnataka and focus on its own project for a 12-million-tonne-a-year plant in Odisha.

“Over the last seven years we have invested considerable resources into this project; however, the delays relating to land acquisition and allocation of captive iron ore blocks means this project is no longer viable,” ArcelorMittal India and China chief executive Vijay Bhatnagar said.NextMAds

The company will continue with its two other Indian projects in the mineral-rich states of Jharkhand and Karnataka.

The Jharkhand plant is expected to have an annual capacity of 12 million tonnes, while the one in Karnataka is expected to have capacity of 6 million tonnes. spokesman Ritesh Sinha declined to say if the company has set a deadline for the two projects.

Although ArcelorMittal is pulling out of Odisha, its rival POSCO is expected to get an iron ore exploration licence for its planned $12 billion plant in the state, two government officials told Reuters last week. REUTERS

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First Published:18 Jul 2013, 12:34 AM IST
HomecompaniesnewsArcelorMittal to scrap planned steel plant in Odisha

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