Why is India becoming unsuitable for Investment?

Union Steel minister Beni Prasad Verma today asked NRI billionaire L N Mittal to  stop “maligning” India and its government, asking why the steel baron was not setting up his plants in the country.

“He should stop maligning India and the Indian government. Why is he not beginning work on his projects,” Verma said.

Verma said South Korean steel major Posco is now making progress in its $12 billion projects to set up 12 million tonne steel plant in Orissa.

“Those who want to go ahead, they like Posco are making progress,” the minister said.  ArcelorMittal is waiting for six years to implement its $30 billion projects mostly in Orissa and Jharkhand states.

Meanwhile, POSCO signed a memorandum of understanding in June 2005 with the state government of Orissa to construct a $12 billion steel plant.  Various regulatory delays and controversies prevented the company from starting construction.

The memorandum expired in June 2011 and as of April 2012, it has not been renewed. If it has taken 7 years even for the contruction to begin in case of POSCO which you so proudly quote, how long do you think it would take for Mittal’s to acquire land and start their Mills? And why should he, as a businessman, pump in $30 billion in a project which is not even sure to take off. Wake up, stop talking and start working.

Posco di shut down its camp office on April 29, at Noliasahi in Jagatsinghpur’s Nuagaon gram panchayat area after the national green tribunal (NGT) scrapped environment clearance to the company on March 30.