Is Lakshmi Mittal having second thoughts about participating in the Bhatinda refinery project? This report suggests that Mittal might walk out of the project if the state government does not extend fiscal incentives that had been promised a few years back. The incentives include waiver of sales tax on fuel which is said to be vital to the viability of this land-locked refinery.
The reports also suggest that a change in the global economic environment that has severely affected the profitability of Mittal’s steel empire may be behind his latest move. A few months back, Mittal pulled out of the Vishakhapatnam refinery and petrochemical project mooted by Hindustan Petroleum Corp Ltd (HPCL).
HPCL and Mittal hold 49 per cent stake each in HPCL-Mittal Energy Ltd, the firm implementing the Bathinda refinery project.