Tata Steel says land policy holding up Vietnam project
27 Dec 2008
Integrated steel manufacturer Tata Steel has blamed land location problems for delays in its Vietnam steel project. Tata Steel, the world's sixth largest steelmaker, plans to build a $5 billion steel plant in Vietnam.
Tata Steel said the Vietnam government, which had indicated a plot for locating the project, is yet to allocate the land. Instead, the government now plans to change the location, reports quoting Tata Steel sources said.
The plant, with an annual capacity of 4.5 million tonnes when completed, requires 1,100 hectares of land.
Reports had also said that Tata Steel may have to wait till 2011 at least to commission the first phase of the plant, which will have a total capacity of 4.5 million tonnes.
The report also attributed the delays to zoning problems associated with a large number of projects proposed for an economic zone in the southeast Asian country.
Tata Steel had signed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries to build the plant in three phases. Tatas will own 65 per cent in the venture. The first phase was to be commissioned by end-2010.
Tata Steel, the world's sixth largest steel producer, has plants in Thailand, Singapore and Europe besides India.
Meanwhile, the Liberian government has cleared Tata Steel's bidding for mines in Liberia.
''Ministry of justice, Republic of Liberia, has cleared Tata Steel of all allegations and has invited Tata Steel Ltd to join the bidding process for the western cluster iron ore project in Liberia,'' Tata Steel said in a release, adding ''In a communiqué the ministry has informed the company that the investigations have not shown any involvement by Tata Steel in any acts of impropriety, as alleged in media reports, as these have not been substantiated by the investigation panel of Liberia's Public Procurement and Concession Commission.''
