Mittal's remark on India's investment stirs govt

A day after billionaire L N Mittal's stinging remark that India was not prepared for mega investments, senior Cabinet minister Kamal Nath said on Friday the criticism was valid, but only in relation to mining sector.

Taken aback by the attack, Orissa government promised early clearances to mega steel projects, including Mittal's.

The developments assume importance in the backdrop of Mittal voicing his frustration at his Rs 1 lakh crore (Rs 1 trillion) projects in Orissa and Jharkhand not taking off. The billionaire industrialist said on Thursday that India was not prepared for mega projects.

"I think there is a force in his point where mining is concerned. He is talking about the various approvals which are required by the mining sector. So there is a valid point he made which the government has to look at," transport minister Kamal Nath said in New Delhi.

Nath was commerce and industry minister when Mittal first announced his intention to set up greenfield plants in India in 2005.

In the meantime, Orissa finance minister P C Ghadai said: "There will be opposition for political purposes. In a democracy it happens. But the government is making all efforts to give land. Be it Posco or ArcelorMittal, discussions are on. The government is trying to overcome these problems."

Amid these developments, Karnataka has announced that it has approved a Rs 30,000 crore (Rs 300 billion) investment proposal of ArcelorMittal for setting up a six million tonne per annum steel plant.

Image: Kamal Nath