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People and Project Problems for Lakshmi Mittal

Published: Aug 23, 2013 06:58:02 AM IST
Updated: Aug 23, 2013 11:48:58 AM IST
People and Project Problems for Lakshmi Mittal
Image: Vivek Prakash / Reuters

Lakshmi Mittal’s ArcelorMittal might shelve another of its two planned mega steel projects in India following the exit of some of its senior executives, including Sanak Mishra, CEO of Greenfield Projects (see Transitions). In July, Mittal had put off a similar project in Odisha. Besides the delays in getting clearances, it has a net debt of almost $17 billion and is looking to cut expenditure. Thus, investment in additional units doesn’t make sense when capacity utilisation of steel plants has fallen across the world.

Now the question is which of the two projects—Jharkhand or Karnataka—will Mittal shelve? While land acquisition in the southern state is done, the billionaire is yet to get access to iron ore mines from the local administration. It is the other way around in Jharkhand, where acquiring land continues to be a hurdle, despite conditional grant of mining rights.

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(This story appears in the 06 September, 2013 issue of Forbes India. To visit our Archives, click here.)

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  • Anthony

    One reason for pull out by steel majors is due to the overall slump in the steel industry across the world. So sinking in money is not viable and hence the pull out by POSCO and Mittal. But most people are making a hue and cry.

    on Aug 23, 2013