Mittal threatens to stop work on refinery

MIttal Steel Co. founder Lakshmi N. Mittal has threatened to stop work on Rs189.19 billion (US$3.8 billion) oil refinery project at Bhatinda in Punjab, India. The industrialist demanded that the state government restore fiscal incentives it had taken away a few years ago. According to media reports, Mittal wrote to Prime Minister Manmohan Singh demanding fiscal concessions such as sales tax waivers on the fuel the refinery will produce. Without the concessions, Mittal said he will not put more funds beyond the initial Rs5 billion (US$100.3 million) he had paid for equity.The refinery is being built by Hindustan Petroleum Corp. Ltd. and Mittal Energy Investment Pte. Ltd. Singapore each hold a 49% stake each in HPCL-Mittal Energy Ltd., the firm implementing the Bhatinda refinery project. (March 29, 2009)