Millennium Post

ArcelorMittal drops Odisha steel plant

In the biggest foreign investment pullout, world’s largest steel maker ArcelorMittal Wednesday scrapped its USD 12 billion (Rs 50,000 crore) steel plant in Odisha 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 30,000 crore steel mill in Karnataka and the government widened its doors to foreign direct investment for a dozen sectors.

Steel baron Lakshmi Mittal-headed ArcelorMittal’s proposed plant in Odisha was among the biggest foreign direct investments India has attracted. Two other plants – Rs 52,000 crore steel mill of Posco in Odisha and Rs 50,000 crore steel mill of ArcelorMittal in Jharkhand are the two other largest FDI India has attracted. Both the projects are also facing inordinate delays.

‘ArcelorMittal has met today with the Government of Odisha’s Chief Secretary to inform him that the company has decided not to progress with its planned construction of an integrated steel plant and a captive power plant in the district of Keonjhar,’ the company said in a statement.
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’.
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