ArcelorMittal,is a world's top steel producing company, headquartered in Luxembourg. It was formed in 2006 from the acquisition of Arcelor by Mittal steels. It contributes over 6% of world crude steel production, with an annual production of over 97 million tonnes per annum. The announcement was made day after South Korean steel major has scrapped Rs 30,000 crore steel project in Karnataka acknowledging similar problems.
ArcelorMittal India and China Chief Executive, Vijay Bhatnagar mentioned, the company's other two projects in Jharkhand and Karnataka were making “steady progress” and it would continue to go ahead with them.
“The Jharkhand plant is expected to have an annual capacity of 12 million tonnes, while the one in Karnataka is expected to have capacity of 6 million tonnes.The delays relating to land acquisition and allocation of captive iron ore blocks means (the Odisha) project is no longer viable,” Bhatnagar said.
This has come as a big shock to Indian government, specially when the government is putting all its effort to attract Foreign Direct Investment (FDI) to control depreciating rupee against US dollar. POSCO's Rs 52,000 crore steel plant in Odisha and ArcelorMittal's Rs 50,000 crore steel plant in Jharkhand are the two major foreign direct investment, government has attracted , though both projects are facing problems related to raw material linkage and land acquisition.
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