Once bitten twice shy. After a rather bitter experience in Odisha, where Arcelor Mittal decided to pull out of its Rs 60,000 crore 12 MTPA (million donnes per annuam) steel plant due to severe delays in regulatory clearances and land allocation, Lakshmi Mittal is not gung- ho about India anymore, reports CNBC-TV18’s, Kritika Saxena quoting sources.
“Arcelor Mittal is no longer looking at making fresh investments in India especially in the steel sector;” said a source close to the development. According to the source, the company is currently working on a 12 MTPA in Jharkhand and a 6 MTPA plant in Karnataka. “Both the projects have been delayed. While the company is still working to get these functional, it is wary of the slow progress on both these plants. That’s the reason why the company has decided to not make fresh investments. The global board will closely monitor and review the projects in India” he added. Also read: 'Coal blocks auction to definitely take place this fiscal' In its FY13 annual report, Arcelor Mittal had hinted that India was going through a tough time. The excerpt on India from the annual report read; “India, inflation remains uncomfortably high, limiting the ability to reduce interest rates any further to promote growth. India has struggled with widening current and trade account deficits due to the combination of weaker capital inflows, high imports and slower export growth” However, the company recently posted a better than expected set of numbers for the third quarter of CY13 (July-Sep quarter), signaling that it was on its way to revival after a tumultuous year. The company managed to bring down losses substantially. Net loss for Q3, CY13 came in at USD 193 million, lower than the loss of USD 652 million in Q3, CY12.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
