India to take up Tata Steel proj issue with Vietnam

India will take up with Vietnam land allotment and other problems related to Tata Steel's proposed mega steel plant in the South East nation.

"I will bring to the notice of the leadership of Vietnam about some of the outstanding issues raised by the Tata Steel with reference to the allocation of land," Minister of State for Industry and Commerce Ashwani Kumar told PTI here.

Tata Steel Chief Executive Indronil Sengupta said that the Vietnam government has allocated 1,300 acres of land for the project and it must now formally allot it to the company.

"We are looking forward to getting the land in the next couple of months and thereafter to start project implementation," he said.

It is understood that though the Planning Department here has given the necessary certificate signifying all clearance and actual allotment of the land, the project is delayed because of a Taiwanese company also seeking the land for the purpose.

Tata Steel has signed a memorandum of understanding with Vietnam Steel Corporation, Vietnam's largest steel company, to build a $5 billion integrated steel project in Ha Tinh province that would roll out 4.5 million tonnes steel over 10 years.

Tata steel will have 65 per cent stake in this project. The agreement entitles the company to 30 per cent equity stake in an iron ore mining project in Vietnam.

"Indian government will proactively promote and facilitate the Indian industry in its objective of establishing global presence," Kumar, who accompanies President Pratibha Patil during her four-day visit to this country, said.

The minister took up the matter with the leadership of the Ho Chi Minh provincial government.