June 9 India's Jindal Steel & Power (JSPL)
said on Saturday it was making plans to scrap a $2.1
billion steel project in Bolivia, saying the Bolivian government
had not met contract terms that include supply of natural gas
for the project.
The steel and power producer said it had served its "intent
to terminate the contract" and the Bolivian government had 30
days to resolve the issues.
"In case government of Bolivia comes out clean and informs
as to how much gas it can actually supply and agrees to
reconfigure plant capacity and investment and amend the contract
JSPL can consider staying back," a Jindal Steel statement said.
Jindal Steel had signed a pact with the Bolivian government
in 2007 to invest $2.1 billion in iron ore mining and
steelmaking. The company said it was the single largest foreign
investment in the country.
According to the contract, Bolivia was to sign an agreement
to supply 10 million cubic metres per day of natural gas, Jindal
Steel said, adding the pact had not yet been signed.
Also, the Bolivian government has so far not provided all
the land required for the project, the company statement said.
(Reporting by Sumeet Chatterjee; editing by Andrew Roche)