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Journalism of Courage
Jindal Steel Bolivia,an arm of Jindal Steel & Power (JSPL),may abandon its investment plan of $2.1 billion (around Rs 11,550 crore) in Bolivia for setting up a steel plant due to non-fulfilment of contractual obligations by the South American country.
Jindal Steel Bolivia has sent a letter to Government of Bolivia,on June 8,conveying its intension to terminate the contract for investment of $2.1 billion,due to non fulfilment of the contractual obligations on the part of Bolivian government, the company said in a statement.
JSPL had signed a joint venture contract with the government of Bolivia,in 2007 to invest $2.1 billion for setting up an integrated steel plant of 1.7 MTPA capacity,including ore mining,pelletisation (10 MTPA) and DRI (6 MTPA). As per the contract,Bolivia was to sign an agreement for supply of natural gas required for the project 10 million cubic metre per day (MCD) within 180 days of signing of the contract. The same has not been signed till date,JSPL said.
