Tata Steel has offered the government a
sweetener to end its five-year impasse to get its $5 billion steel project off
the ground.
Indronil
Sengupta, chief executive of South East Asia projects at Tata Steel, said the
Vung Ang Economic Zone site clearance was still in the hands of the government
and the investor had no role to play in accordance with the Investment Law.
“However,
considering the present constraints, we have proactively offered an advance
which is double than any one has committed to pay in this economic zone,” said
Sengupta. But, Sengupta did not reveal how much Tata Steel would pay in advance
to support the Ha Tinh province site clearance work.
The
offer is considered a concession by the Indian firm to clear up the site
clearance issue, the main obstacle holding back the project’s investment
certificate. “Now it is up to the government to take a decision on the issuance
of the investment certificate and the investors have nothing further to
contribute. We have completed all formalities as per the Investment Law with
respect to the investment certificate and had submitted many months back,”
Sengupta added.
Tata
Steel’s project, initially proposed in May 2007, will produce 4.6 million
tonnes per year and is jointly invested by Tata Steel, Vietnam Steel
Corporation and Vietnam Cement Industries Corporation, in which foreign partner
committed to hold a 65 per cent stake.
However,
Tata Steel and Ha Tinh People’s Committee have failed to reach a specific
agreement on site clearance cost at the 725 hectare site where Tata proposed to
build its project.
Nguyen
Dinh Van, deputy director of Vung Ang Economic Zone Management Authority, said
he had not yet received Tata Steel’s offer. “Maybe it was offered to government
bodies,” he said.
Ngoc
Linh | vir.com.vn
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