India state calls meet to speed $40 bln steel projects

Discussion in 'Economy & Infrastructure' started by LETHALFORCE, Oct 20, 2009.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    India state calls meet to speed $40 bln steel projects | Industries | Industrials, Materials & Utilities | Reuters

    India state calls meet to speed $40 bln steel projects


    BHUBANESWAR, India, Oct 19 (Reuters) - Indian authorities have called an urgent meeting this week to discuss ways to speed up $40 billion steel projects delayed by mass farmer protests in an eastern state, officials said on Monday.

    Authorities in the mineral-rich state of Orissa have signed contracts with 49 companies for steel plants in the state in the last five years, but protests by farmers and legal hurdles have delayed more than 20 such projects.

    Some of the bigger proposals include a $12 billion plant by South Korean steelmaker POSCO (005490.KS), a 6-million tonne steel project by TATA Steel Ltd (TISC.BO), and a 12-million-tonne steel project by Arcelor-Mittal (ISPA.AS) (MT.N).

    "We will discuss all the pending issues regarding setting up of steel industries in Orissa," T.K. Mishra, a top government official told Reuters.

    Officials said they would discuss how to win over farmers, including alternative sites for some plants and improved compensation.

    Indian Steel Secretary P.K. Rastogi told reporters in New Delhi that the focus at the meeting would be on the ArcelorMittal and POSCO plant -- India's biggest foreign direct investment.

    The POSCO project has been delayed by more than two years due to the protests.

    The situation in Orissa reflects a larger standoff between industry and farmers unwilling to give up land and water in India, where two-thirds of the population depend on agriculture for a living. (Reporting by Jatindra Dash; Writing by Bappa Majumdar; Editing by Ron Popeski)
     
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  3. sob

    sob Moderator Moderator

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    The situation in Orissa is 100% due to the inapptitude of the Orissa Govt. They take one step forward and 2 steps backwards.

    Till date they do not have any policy for industralisation of the state and effective wooing of Pricate industry. Some of the glaring examples are the withdrawl of AES from a Power Generation and distribution, withdrawl of the Tatas from the Gopalpur steel project ( Fed up with the delays they instead expanded the capacity at Jamshedpur), The Aluminum plant from L&T, Steel plant by MMTC.

    This is a very long list and till the time the current state Govt. does not work fast they will loose the investment oppurtunity.
     
  4. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    This situation due to the Burecratic nonsense has become so bad it has frustrated big players like Mittal who are starting to reconsider their steel ventures in India and may even pullout if some headway is not made.
     

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