NRI billionaire L N Mittal-led ArcelorMittal is learnt to have started relocating its staff based in Orissa to other operations, generating speculation that the move was a precursor to shelving of the Rs 50,000 crore steel project that is haunted by delays.
"The staff relocation has started in Orissa. The company is putting the project on the back burner. Going forward, they may perhaps also completely drop the project," a source familiar with the development told PTI.
Earlier this year, Group Chairman and CEO Mittal had severely criticised the Indian system of governance and said: "We are not satisfied with the progress made in Jharkhand and Orissa... There have also been delays in processes because Indian government as well as the state governments have never received such... Mega investments."
"I am sure Prime Minister (Manmohan Singh) is also not satisfied with the progress. He has told many a times that these investments should be accelerated," Mittal had said.
The MoU for the Orissa project was signed in December 2006.
When contacted, spokesperson of ArcelorMittal's Indian operations Mandakini Sud said: "ArcelorMittal India employees are based in our various offices around the country. They work on India projects rather than a dedicated state one. Based on need, employees assist on different projects."
The spokesperson further said: "There is no priority list for India project." She was responding to queries related to speculation about the company's Orissa project.
Frustrated by regulatory hurdles and land acquisition problems, the group, which has an India investment target of over Rs one lakh crore,has inked an initial agreement with Karnataka for setting up a Rs 30,000 crore project.
It has also acquired substantial stake in Indian steel maker Uttam Galva and is also reported to be talking to others including Bhushan Power and Steel and Bellary Steel.
The spokesperson, however, did not comment on queries about the company's reported negotiations with other steel firms for acquiring stake.
