ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: report

Discussion in 'Economy & Infrastructure' started by hit&run, Jul 17, 2013.

  1. hit&run

    hit&run Elite Member Elite Member

    Joined:
    May 29, 2009
    Messages:
    5,499
    Likes Received:
    4,683
    ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: report


    ArcelorMittal scraps Rs 40,000 crore steel project in Odisha: report - NDTVProfit.com

     
  2.  
  3. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    21,004
    Likes Received:
    11,850
    Location:
    Akhand Bharat
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Mittal ran from India to avoid red tapism. why he want to invest in India again ???
     
  4. drkrn

    drkrn Senior Member Senior Member

    Joined:
    Apr 15, 2010
    Messages:
    2,455
    Likes Received:
    898
    Location:
    visakhapatnam
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    easy returns,now cancelling the project due to problems with land aquisition
     
  5. VIP

    VIP Ultra Nationalist Senior Member

    Joined:
    Mar 22, 2012
    Messages:
    4,689
    Likes Received:
    3,201
    Location:
    Gandhinagar
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    FDI ??? Going instead of Coming ??
     
  6. TrueSpirit

    TrueSpirit Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    1,891
    Likes Received:
    824
    Location:
    Forget It....Trace my IP if you can
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Mining is not a long-term sustainable venture (hallmark of primary economies)...so the repercussions of this development are debatable.
     
  7. t_co

    t_co Senior Member Senior Member

    Joined:
    Dec 20, 2012
    Messages:
    2,537
    Likes Received:
    699
    Location:
    China
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Except there will be a large steel mill on site as well, so this is not just a mine.
     
  8. Energon

    Energon DFI stars Stars and Ambassadors

    Joined:
    Jun 3, 2009
    Messages:
    1,199
    Likes Received:
    760
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Mining (and natural resource extraction in general) is notoriously related to things like corruption, environmental destruction and public health disasters; however if you look closely the act of mining itself isn't the primary problem, but rather the lack of appropriate oversight. This is precisely why mining in most parts of the under developed world with incompetent and corrupt governments is disastrous (particularly Central Asia and Africa) while developed countries with functional institutions like Australia, Canada and USA have benefited tremendously from their local mining ventures.

    The true repercussion here isn't the failure of the mining project but rather the absolute ineptitude of the Indian establishment to manage large ventures effectively due to incompetence, corruption and laziness and the subsequent aversion by multinational companies. Gone are the days when India was touted to be the "next great thing", now for many foreign investors India has become an acronym for "I'll never do it again."
     
    hit&run, VIP and TrueSpirit like this.
  9. TrueSpirit

    TrueSpirit Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    1,891
    Likes Received:
    824
    Location:
    Forget It....Trace my IP if you can
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Adding to your post.....not only foreign investors are getting increasingly averse of India, majority of Indian industrial groups & conglomerates prefer investing outside India. In fact, there are still several new companies entering India for setting up offices, while existing ones are adding numbers & expanding presence at a hectic pace but it is the mostly the Indian investor that is deserting India for he sees little hope here.

    We deserve this. Our people chose this government. Lets see if the electorate can get its act together rather than being swayed by populist freebies, caste reservations, free booze & empty rhetoric. Also, the upper middle-class & elite needs to shed its habitual apathy & passivity.

    I have been in & out of India in last 8 years & have seen quite a bit: up, close & personal.

    Media hype makes India a "big-thing" & its the same factor that advertises India as a "damp squib" or a "failed story". The reality is, truth lies somewhere in the middle.

    India would never be really become a "big thing" but neither would India ever stop growing (at least for the next 50 years).

    I wont prognosticate much but it is a given certainty that India would continue to get only better for more & more numbers of its people. There is no stopping this juggernaut. Not anymore. Forces already set in motion would ensure that the march towards betterment continues.

    There are too may factors at play here & unless one understands the dynamics of their interplay, he is susceptible to form phony & half-baked notions about India.

    Numbers are the closest one gets to the "absolute truth" & yet numbers alone won't give you the complete picture. The objective reality here is in stark contrast to what is being fashionably reported by media columnists & wannabe experts.

    The real Indian story doesn't get much coverage. The picture here is more rosy as well as bleaker, simultaneously, depending upon who is the subject of your interest.
     
    Energon, VIP and mikhail like this.
  10. TrueSpirit

    TrueSpirit Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    1,891
    Likes Received:
    824
    Location:
    Forget It....Trace my IP if you can
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    The whole story starts with mining & I earnestly expect you to have some high-level understanding of the mining sector here (think, regulatory environment, land-acquisitions norms, bureaucratic steeplechases, neta-babu-seth-thekedaar nexus, etc.).

    If you understand it, you would appreciate the fact that such ventures are more likely to fail in India than anywhere else. In fact, it was destined to be a non-starter.

    And, wonder of wonders !!! We could do without this investment !!!

    Lets see whether the moolah really gets to where horse's mouth is.
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    ArcelorMittal sees the China boom is over, no need for excess capacity.
     
  12. ladder

    ladder Senior Member Senior Member

    Joined:
    Mar 28, 2013
    Messages:
    4,751
    Likes Received:
    2,666
    Location:
    India
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    AM has two ongoing projects in Karnataka and Jharkhand.

    No way they could have gone ahead with three greenfield projects.

    They had signed three MoUs in anticipation. Had they got land in time they could have continued.

    There might have been in significant land acquisition in other two project site, so they decided to scrap the third MoU.
     
  13. Energon

    Energon DFI stars Stars and Ambassadors

    Joined:
    Jun 3, 2009
    Messages:
    1,199
    Likes Received:
    760
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Excellent post. I agree with virtually everything you say. Admittedly my perception of India is entirely that of an outsider however I'm certainly aware of the contradictory nature of virtually everything in India. I also agree with the assertion that India is unlikely become the "next great thing" and more likely to amble along slowly. However I'm not sure it can automatically roll on for 5 decades. This process can very easily be undone in a matter of a few years if certain measures aren't taken in the short to medium term. Even if growth isn't achieved at a "miraculous" breakneck pace it has to be genuine, robust, and sustainable. I'm convinced that the only way to achieve this is by strengthening critical institutions of economic management and democracy now.

    What sucks about the Indian mining industry (especially in south India) is that it is specifically designed to undermine these two critical growth factors. The infamous Reddy brothers for instance worked hard to destroy the democratic process from within (by bribing their way into political office) in order to enrich themselves and applied an economic model designed to hoard all the profits for themselves. This is essentially the colonial model of wealth extraction.

    I'm not aware of the nuances of Indian politics, however I don't know if merely changing political representation will achieve anything if the new government continues using alternate techniques to undermine those two critical factors.
     
    Last edited: Jul 22, 2013
    TrueSpirit likes this.
  14. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,117
    Likes Received:
    23,545
    Location:
    Somewhere
    Re: ArcelorMittal scraps Rs. 40,000 crore steel project in Odisha: rep

    Indians are deserting the sinking ship and we talk about FDI coming in to save the economy!
     
    TrueSpirit likes this.

Share This Page