BS reported that after two years of waiting TATA Steel will get alternative land in Vietnam for building a 4.5 million tonne a year steel plant with an investment of USD 5 billion.
As per report the board of Vung Anh Economic Park has proposed allocation of 725 hectares to TATA Steel and its Vietnamese partners in the central province of Ha Tinh.
Mr Indronil Sengupta a executive manager of projects in Southeast Asia of TATA Steel told Business Standard the proposal had been accepted by the company.
Under the proposal, 700 hectares would be used for construction of a steel plant with a designed capacity of 4.5 million tonnes a year. Under the terms, the steel venture was supposed to get a 30% stake in the Thach Khe iron ore mines.
A MoU for the project was signed in May 2007 and the joint venture agreement was reached in August 2008. TATA Steel has 65% stake in the venture while Vietnam’s Steel Corporation and Vietnam Cement Industries Corporation hold 30% and 5% respectively.
The venture had been dogged by delay in acquiring land and tying secure supplies of iron ore. The land that had been identified by TATA Steel was given away to a Taiwanese company.
(Sourced from Business Standards)
