New Delhi: Waiting for six years to get USD 30 billion projects implemented in India, Lakshmi Mittal-promoted ArcelorMittal Wednesday said its investment may not materialise for another five years, as it recognises that patience is required to realise mega plans in the country.
"While remaining committed to its proposed investments, ArcelorMittal recognises that patience and a significantly longer timeframe are required to realise mega projects in India. As such, we don't expect our greenfield projects materialising in the next five years," company spokesperson said.
The spokesperson said in India, the processes of acquiring land, obtaining governmental approvals and securing raw material are marred by considerable delays.
ArcelorMittal's CEO L N Mittal had told shareholders of the world's largest steel producer in Luxembourg on Tuesday, "we continue to experience difficulties in India. My belief is that the Indian projects may not see the light for five to 10 years."
ArcelorMittal had announced plans to set up two steel plants of 12 million tonnes each in Jharkhand and Odisha in 2006. Later, it also unveiled a plan to establish a six million tonnes plant in Karnataka.
While the Jharkhand project is making slow progress, the Odisha plans have been on the backburner, largely due to land acquisition issues and regulatory hurdles.
However, in Karnataka, it has made progress. "We have received possession of 1,828 acres and understand that Karnataka Industrial Areas Development Board (KIADB) is processing the transfer of additional 827 acres," the spokesperson said.
PTI
First Published: Wednesday, May 09, 2012, 20:42