Tata Steel project in Vietnam delayed

Tata Steel project in Vietnam delayedIndia's largest steel maker Tata Steel is forced to extend the deadline for commissioning the first phase of its steel plant in Vietnam. The project has been delayed due to the problems with land acquisitions in the special economic zone where large number of companies are setting up their projects.

The project is already approved by the planning department of Vietnam but it is facing opposition from a Taiwanese company which intents to set its own plant in 1,100 hectares of land. A spokesperson for Tata  revealed, "The authorities are trying to accommodate all the projects. At present, they are trying to work that out by modifying the master plan of the economic zone."

Tata's project worth USD 5 billion is expected to be completed by 2010 as per the reports of Indian business daily, Business Standard. The steel plant would be capable of producing 4.5 million tons of steel per annum. Tata Steel would hold 65% stake in this project and 30% equity stake in an iron ore mining project in Vietnam. The country has sufficient stock of raw material and it would be sourced from the country.

Shares of company witnessed 1.85 per cent decline and closed at Rs 217.45 at the BSE.

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