Steel minister sees deterrents to new investment
Fresh investment in the steel sector may be discouraged by delays to projects caused by problems such as land acquisition hurdles, steel minister Virbhadra Singh said on Sunday.
January 17, 2011 / 11:24 IST
Fresh investment in the steel sector may be discouraged by delays to projects caused by problems such as land acquisition hurdles, steel minister Virbhadra Singh said on Sunday.
"We are keen that the steel industry should flourish and the projects should be completed, but there are inherent difficulties," Singh said in a speech to the Global Steel Conference in New Delhi."Greenfield projects have been delayed ... This delay may have put off other investors," Singh added.The government has set a target of producing 120 million tonnes of steel annually by the end of 2012, up from about 70 million in 2009/10. However, some analysts have said the target may be too high.Steel companies looking to invest in India have faced land acquisition problems, environmental clearance hurdles and regulatory hassles from state and central government agencies while setting up new plants and even expanding existing ones.The world's largest steel company ArcelorMittal and South Korea's POSCO have announced plans to set up plants in India but have so far been unable to acquire land. 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!
