Violence & resistance forced our Odisha pull-out: ArcelorMittal
24 July 2013 10:42 PM GMT
ArcelorMittal, under attack from authorities for scrapping $12 billion Odisha steel project, on Tuesday contested charges of being 'non-starter' and lacking greenfield experience, saying it had made good progress until faced with 'physical resistance and violence on the ground'.
'ArcelorMittal made all the efforts it could to set up a greenfield project in Odisha... We were making good progress until we faced physical resistance and violence on the ground,' a spokesperson of the world's largest steel maker said.
The remarks follow allegations by an Odisha Minister and a top Steel Ministry official that the company was never really keen on the 12 million tonne (MT) per annum steel plant and lacked greenfield experience, Arcelor last week scrapped the project citing inordinate delays in clearances.
ArcelorMittal said: 'The company accomplished certain important milestones such as the completion of a feasibility report, an environmental impact assessment study and other relevant technical reports, as well as holding eight Gram Sabhas (public hearings).
'The Orissa government agency IPICOL (The Industrial Investment Promotion Corporation of Orissa) carried out a review in 2010 and found it satisfactory up to that point of time.'
Echoing the views of the Odisha government that the company was never really keen on the project, a top Steel Ministry official, who did not wish to be quoted, said that not having a track record of setting new projects, Arcelor was never serious on setting up the Keonjhar plant.
'They signed in 2006. When they signed (MoU with Odisha government), people had lots of apprehensions... Mittal (ArcelroMittal chairman and CEO L N Mittal) doesn't have a track record of greenfield plants. He is seen as a person more keen on acquiring... In my opinion they haven't been doing ground work,' the official said.
The facts are otherwise, retorted the spokesperson, adding that the Group has world-class expertise on setting up greenfield projects.
'ArcelorMittal is pursuing a 15 MTPA greenfield project in Liberia (Africa) which entails setting up a railway network of 270 km and development of a full scale port’, it said.
'ArcelorMittal made all the efforts it could to set up a greenfield project in Odisha... We were making good progress until we faced physical resistance and violence on the ground,' a spokesperson of the world's largest steel maker said.
The remarks follow allegations by an Odisha Minister and a top Steel Ministry official that the company was never really keen on the 12 million tonne (MT) per annum steel plant and lacked greenfield experience, Arcelor last week scrapped the project citing inordinate delays in clearances.
ArcelorMittal said: 'The company accomplished certain important milestones such as the completion of a feasibility report, an environmental impact assessment study and other relevant technical reports, as well as holding eight Gram Sabhas (public hearings).
'The Orissa government agency IPICOL (The Industrial Investment Promotion Corporation of Orissa) carried out a review in 2010 and found it satisfactory up to that point of time.'
Echoing the views of the Odisha government that the company was never really keen on the project, a top Steel Ministry official, who did not wish to be quoted, said that not having a track record of setting new projects, Arcelor was never serious on setting up the Keonjhar plant.
'They signed in 2006. When they signed (MoU with Odisha government), people had lots of apprehensions... Mittal (ArcelroMittal chairman and CEO L N Mittal) doesn't have a track record of greenfield plants. He is seen as a person more keen on acquiring... In my opinion they haven't been doing ground work,' the official said.
The facts are otherwise, retorted the spokesperson, adding that the Group has world-class expertise on setting up greenfield projects.
'ArcelorMittal is pursuing a 15 MTPA greenfield project in Liberia (Africa) which entails setting up a railway network of 270 km and development of a full scale port’, it said.
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