Steel magnate Lakshmi Mittal has expressed concerns over the Indian government’s “slowness and tardiness” in giving approvals, especially to projects in the steel sector, but expressed confidence at the country’s growth potential.
“Everyone is concerned about the progress and the slowness (in giving approvals). Clearly, I am also concerned about the slowness and tardiness in some of the approvals,” Mittal told NDTV Profit in an interview here.
He was responding to a query on why he was critical of the way the Indian government had managed certain aspects, particularly regulations, in the steel sector.
Mittal chairs the world’s largest steelmaker ArcelorMittal, which has plans to build two mega steel plants of 12 mtpa in Jharkhand and Orissa and one 6-mtpa plant in Karnataka at Rs 1,30,000 crore. However, marred by regulatory delays and problems in land acquisition, the company has put its Orissa plans on hold. In September 2010, it shifted the plant site in Jharkhand from Khunti-Gumla to Bokaro.
Mittal said that the company was in constant talks with the government to iron out issues. “I am very pleased with my discussions with the government. At least, they are trying to resolve them. We have lots of other issues, so we need to work through this.”
Mittal also said India has great potential and its growth story will continue.
“I am not worried about India’s future growth. We are on the right trajectory. We are affected by the global growth story and uncertainty in Europe, but this does not dismay us.”
On growth potential of the global steel industry, Mittal said he expects the sector to grow by two-three per cent this year, owing to the slow growth all over the world. When asked about US’s protectionism stance, which is expected to be a burning topic in the World Economic Forum, Mittal said, “Definitely there are issues on protectionism. When there is no level-playing field between countries, then protectionism comes in. As long as there is no level-playing field, there are issues.”
