India asks Vietnam to clear regulatory hurdles for Tata plant
India is believed to have asked Vietnam to clear roadblocks for Tata Steel-led $5 billion project stuck in regulatory hurdles.business Updated: Dec 07, 2009 21:48 IST
India is believed to have asked Vietnam to clear roadblocks for Tata Steel-led $5 billion project stuck in regulatory hurdles.
Commerce and Industry Minister Anand Sharma raised the issue during a meeting with his Vietnamese counterpart Vu Huy Hoang to discuss bilateral trade here, an official said.
Though the Vietnam government has offered over 900 hectares to the joint venture led by Tata Steel for greenfield unit, the project is facing legal and regulatory issues.
During the meeting, Sharma asked Hoang to expedite the process of granting all necessary clearances for the Tata Steel's project in Hatinh Province of the southeast Asian nation, the official said.
"The company is facing certain regulatory hurdles and the visiting Vietnamese ministers assured that his government would take all necessary steps," the official said.
Tata Steel, the world's sixth largest steel maker would start construction on the proposed 4.5-million tonnes per annum plant as soon as it gets clearances, said sources.
Tata Steel holds 65 per cent stake in the joint venture while Vietnam's Steel Corporation and Vietnam Cement Industries Corporation have 30 and five per cent stake, respectively.
Tata Steel has plans to set up a cold-rolling mill at the site. It had earlier thought of commissioning it by 2010-end. Now, construction for the first phase of the steel project is likely to be finished by 2012.