Failing to get any of its two mega projects off the ground, the world's largest steelmaker ArcelorMittal on Tuesday said it would henceforth, concentrate on smaller projects that require less land and are faster to execute.
The LN Mittal-led firm had committed investments of over R1,00,000 crore in two 12 million tonne per anum (mtpa) steel plants in Orissa and Jharkhand but a variety of issues, including tedious land acquisition procedures and delay in getting mining leases, have ensured that none of these projects have fructified. The company is now concentrating on smaller 6 mtpa steel plants in Jharkhand and Karnataka, which it hopes will take off next year.
"In India, we are now going more modular and will set up smaller steel plants instead of mega projects so that we can execute them faster,” said Sudhir Maheshwari, group management board member, ArcelorMittal. "There are very limited opportunities in India for acquisitions but we are in discussions with SAIL for an opportunity for a joint venture."
The firm reported a net profit of $1.35 billion for the quarter ended September, a 48 per cent growth over last year backed by a 30 per cent increase in sales at $21.04 billion during the quarter.