Report of Steel ministry estimates threat to $100 Billion Investment
Recently Arcelor Mittal threatened to relocate its proposed steel plants in Jharkhand and Orissa on account of difficulties encountered in acquiring land for the mega projects. earlier TATAs were also forced out of West Bengal to relocate their Nano project in Gujarat. A study by Steel Ministry has reveled following facts:
- 22 major steel projects worth 82 billion dollars are being held up because of procedural delays in obtaining environmental clearance, delays in land acquisition mainly due to public protests, and the global economic downturn.
- This poses a qustion over the Ministry’s target to add 150 million tonnes capacity by 2015.
Companies being affected are Arcelor Mittal, Essar Steel, Jindal Steel, Posco and Tata Steel.
- 70 per cent of 190 delayed infrastructure projects have been stalled on account of problems over land acquisitions, especially the compensation to be paid to the landowners.
The escalating cost of compensation is also forcing up the cost of projects, thereby affecting their viability.