In a major setback to India’s foreign direct investment initiatives, the world’s largest steel maker, ArcelorMittal, abandoned a $12 billion project of building a steel plant in the eastern state of Odisha, citing indefinite delays in acquiring land and an iron ore mine as some of the unresolved issues.
The company’s head Lakshmi Mittal agreed to manufacture 12 million tonnes of steel a year in Odisha in 2006.
“ArcelorMittal has not been able to acquire the requisite land for the steel plant, nor has it been able to ensure captive iron ore security, which is a necessary requirement for the project,” a company report revealed.
“Therefore, taking into account the current economic climate, ArcelorMittal has concluded that it will no longer pursue its plans for a steel plant in Keonjhar (in Orissa) at this stage,” the report also said.
Farmers in Keonjhar had been protesting against the forceful acquisition of land by the state government for ArcelorMittal, saying that they were being forced to sell their lands at below market rates.