Question mark still over Mittal's Jharkhand project
Nov 20, 2006 - 8:20:08 PM
, Reviewed by: Priya Saxena
|
|
|
Mittal Steel wants 600 million tonnes iron ore from the state's Chiria mines but the government has expressed inability to allot it the ore-rich mine. The state government is locked in a legal battle over the mine with Steel Authority of India Limited (SAIL). Mittal Steel is also finding difficulty in getting its choice of land for the project.
|
By Indo Asian News Service,
[RxPG] Ranchi, Nov 20 (IANS) Mittal Steel, apparently peeved at the pace of progress of its proposed mega steel plant project in Jharkhand, has not bothered to participate in the weeklong trade fair here that figures big names like Tata Steel, Essar and Jindal.
Mittal Steel, owned by steel magnate L.N. Mittal, is non-committal about the proposed 12 million-tonne-steel plant to be set up with investment of Rs.400 billion ($8.9 billion).
The company has kept away from the trade fair that began Nov 15 in Ranchi. Many steel companies that have signed Memorandum of Understandings (MoUs) with the state government have opened stalls in the fair.
'Mittal Steel feels the task of setting up a project in Jharkhand is difficult. It could opt out of the project. We have information that Mittal Steel is planning to wind up its Jharkhand office that was opened to expedite the project work,' a reliable official source told IANS.
But the company has not officially communicated anything to the state government over winding up the project. Mittal Steel officials maintain they are still working on the project.
An industry department official told IANS: 'We cannot say why Mittal Steel is not participating in the trade fair. We invited all the investors who have signed MoUs with the state government.'
According to sources, Mittal Steel is upset with the pace of progress of the project. Even L.N. Mittal had expressed unhappiness over it while visiting Orissa in July this year. The MoU for the project was signed last year.
Mittal Steel wants 600 million tonnes iron ore from the state's Chiria mines but the government has expressed inability to allot it the ore-rich mine. The state government is locked in a legal battle over the mine with Steel Authority of India Limited (SAIL). Mittal Steel is also finding difficulty in getting its choice of land for the project.
Meanwhile, the new United Progressive Alliance government led by Madhu Koda has announced it would review all MoUs signed by the previous Arjun Munda government, which has sent wrong signals among investors.
|
Subscribe to India Newsletter
|
|
E-mail Address:
|
|
Feedback
|
For any corrections of factual information, to contact the editors or to send
any medical news or health news press releases, use
feedback form
|
Top of Page
|
