New Delhi: Vietnam on Wednesday assured India of early implementation of Tata Steel's $5 billion project in Ha Tinh province which is pending since 2008. This is one of the largest investments by any Indian company abroad.
"We understand the importance of Tata Group. Indian and Vietnamese officials are trying their best to kick start the Tata project," Vietnamese President Truong Tan Sang said in New Delhi.
There have been short delays in the project, but it will be implemented soon, he said while answering queries during Vietnam-India business forum here. He, however, did not specify the reasons for delays.
The project is facing delays in obtaining the investment licence for which Tata Steel had applied in 2008 and again in the next year.
The project requires about 4,000 acres of land. One major issue is the re-settlement cost.
The project is to be set up by a joint venture in which Tata Steel holds 65 per cent stake. Vietnam Steel Corporation holds 30 per cent stake and the balance is with Vietnam Cement Industries Corporation.
An initial pact for the $5 billion project was signed among the three companies in 2007 and a final agreement was reached in August 2008.
Tata Steel will also have 30 per cent stake in Thach Khe Iron Ore Joint Stock Company which would undertake mining in the Thach Khe iron ore mine, a company official said.
In May this year, Vietnamese Prime Minister Nguyen Tan Dung too had given an assurance to implement the project when Finance Minister Pranab Mukherjee had called on him during his visit to the country.
Mukherjee had asked Dung to ensure that a level-playing field is provided to Tata Steel for its 4.5 million tonnes (MT) project and that there is "no discrimination against Indian investment".
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