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| Essar defers steel projects in Vietnam, Caribbeans |
| Press Trust of India / Bahadurgarh (Haryana) May 06, 2009, 20:46 IST |
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Ruias-led Essar Steel has put on hold its proposed projects in Vietnam, and Trinidad and Tobago owing to the worldwide slump in demand amid the prevailing economic downturn.
"Looking at the prevailing economic downturn, we have postponed our overseas projects for the time being," Essar Group Chairman Shashi Ruia told PTI here.
Essar Steel was working on the viability of setting up steel mills in the two countries, but the size and the investment for the ventures were not finalised.
Essar Steel business Group CEO J Mehra said the proposed projects were in the "nascent stage" and on account of the waning steel demand globally the company has decided to "put them on hold".
Moreover, In India, Mehra said, Essar Steel is waiting for allocation of mineral resources to give shape to its 6- MTPA project each in Jharkhand, Chhattisgarh and Orissa.
Even as the company has decided to apply brakes on its overseas ventures, it is set to commission its 5 million tonnes extended line in Hazira, Gujarat, to take the capacity to 10-MTPA by March 2010 at an investment of $2.7 billion.
At present, Essar Steel has a 4.6-MTPA gas-based steel facility at Hazira. Although, the expanded line would run on coal, the firm will also require 9 metric million standard cubic metre per day of gas to run its facility.
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