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Steel Goal Fades as $12 Billion Projects Dumped: Corporate India

ArcelorMittal and Posco’s decisions to scrap $12 billion of proposed steel projects in India and delays in building plants by Tata Steel Ltd. and its peers will probably cut the nation’s 2020 capacity target by a quarter.

India may add about 50 million metric tons in the next eight years, half of an earlier plan, taking total capacity to 150 million tons, according to the average estimate of six analysts, government officials and company executives in a Bloomberg survey. Slowing demand, land acquisition delays, rising funding costs and difficulties in getting iron ore mining permits are diminishing the viability of the projects, said A.S. Firoz, the steel ministry’s chief economist.