ArcelorMittal's India projects may be delayed by two years

NEW DELHI: ArcelorMittal, the world's largest steel maker, is likely to overshoot the 2012 deadline to complete the USD 20-billion India project by nearly two years due the global economic downturn and delays in securing raw material resources and land.

"We can see (the projects) being delayed by at least two years because of the global financial crisis and delays in securing mining rights, land and other regulatory approvals," ArcelorMittal India CEO Vijay Bhatnagar told PTI today.

The company was earlier planning to start each of its 12 million tonnes integrated steel plants in Jharkhand and Orissa by the first half of 2009 and complete the same by 2012.

However, with industrial downturn taking a toll on steel demand and the company not yet comfortable with raw material resources it has secured so far, it sees the India projects being delayed to 2014.

In a regulatory filing to the US Securities and Exchange Commission also, the L N Mittal-led company said the "timing and scope of implementation of the (India) project is currently under review".

"Project implementation to date has consisted primarily of detailed reviews and securing assess to a small portion of necessary raw materials," the steel major said.