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PM: India to resolve land acquisition disputes

Bloomberg  |  New Delhi/Mumbai 

Prime Minister Manmohan Singh said his government would resolve disputes over land acquisition that threaten to delay projects including steel ventures by Arcelor Mittal and South Korea's Posco.
Mittal and Posco have announced plans to spend $21 billion on plants in India to tap rising steel demand. Construction work was delayed because they were not allocated enough land, the companies have said.
"There are issues pertaining to land alienation and displacement of people, and this must be addressed," said Singh in New Delhi today. "We will address them to the satisfaction of all," he added.
Delays in allocating land and mining permits may undermine India's efforts to attract more overseas investment even as the economy may expand at a record pace of 9.2 per cent. The country expects $12 billion in foreign direct investment in the year ending March 31. China, which began opening its economy 13 years before India, got $60 billion in overseas funds in 2005.
Mittal agreed to build a $9 billion plant in Orissa, Malay Mukherjee, a member of the group management board, said on December 21. Mittal in October 2005 announced a $9 billion, 10 million-tonne-a-year plant in Jharkhand state, which neighbours Orissa.

First Published: Tue, March 27 2007. 00:00 IST