ArcelorMittal scraps steel plant in India on land delay

A man works at the blast furnace of the ArcelorMittal steel plant of Grande-Synthe, northern France The company said it was still pursuing two other projects in Jharkhand and Karnataka states

Related Stories

The world's largest steel company, ArcelorMittal, says it has abandoned plans to build a steel plant in eastern India because of problems acquiring land.

Initially agreed in 2006, the company was to manufacture 12 million tonnes of steel a year in Orissa state.

But farmers who oppose the purchase of their land have protested.

The move comes a day after Korea's Posco scrapped a $5.3bn (£3.5bn) plan for a steel plant in southern India.

"ArcelorMittal has not been able to acquire the requisite land for the steel plant, nor has it been able to ensure captive iron ore security, which is a necessary requirement for the project," the company said in a statement.

"Therefore, taking into account the current economic climate, ArcelorMittal has concluded it will no longer be pursuing its plans for a steel plant in Keonjhar [in Orissa] at this stage."

The company said it was still pursuing two other projects in Jharkhand and Karnataka states.

Farmers complain that they are being forced to sell land at below market rate.

More on This Story

Related Stories

More Business stories

RSS

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank bat blood and urine to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.