India not prepared to handle mega projects: Mittal

7 jAN 2010
World’s largest steel maker ArcelorMittal believes that India is not equipped to handle big-ticket investments, although the country needs over half a trillion dollars to shore up its infrastructure.

Billionaire Lakshmi N. Mittal, whose company’s projects are worth $22 billion have been held up for over four years for want of regulatory clearances and land, told reporters this was so because no one quite saw the rapid growth coming.

“We blame the whole country for this because we did not experience this kind of growth, we did not experience this kind of interest in investments in India,” he said, adding that neither the Centre nor the states were prepared for this kind of investment in the steel industry.

In 2005, Mr. Mittal signed a pact with the Orissa government for a 12 MTPA steel plant. He also announced plans for an identical project in Jharkhand, but they are yet to come up.

“Clearly, we are not satisfied with the progress that ArcelorMittal has made so far. There have also been delays in processes because the 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 lots of times that these investments should be accelerated,” Mr. Mittal said.

These delays are despite India making public that it needs over $500 billion in investments in infrastructure sector and that too steel being a key construction material.

Mr. Mittal met the Steel Minister and Karnataka chief minister, whose government has cleared a Rs. 30,000 crore investment proposal by the steel maker.