ArcelorMittal scraps Rs 50,000-crore Orissa project,to pursue two others

World’s largest steelmaker ArcelorMittal on Wednesday scrapped a planned $12-billion (Rs 50,000 crore) steel plant in Orissa over inordinate delays,problems in acquiring land and securing iron ore linkages.

The development comes just a day after South Korean steel major Posco pulled out of its Rs 32,000-crore steel mill in Karnataka and the government widened its doors to foreign direct investment for several sectors. Lakshmi Mittal-headed Arcelor Mittal’s proposed plant in Orissa was among the biggest foreign direct investments India has attracted. “ArcelorMittal has met today with the Government of Orissa’s chief secretary to inform him that the company has decided not to progress with its planned construction of an integrated steel plant … in the district of Keonjhar,” the company said.

However,the company will continue to pursue its other two projects in Jharkhand and Karnataka,it said,adding that “both of which are making steady progress”.

“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,” said Vijay Bhatnagar,CEO of India and China for ArcelorMittal.