The world's largest steel company ArcelorMittal, which is setting up two steel plants in India of 12 million tonne capacity each, has said that access to land, raw material, and natural resources remains a challenge for its greenfield plans in the country, and these constraints are expected to delay many steel projects here. Of the 317 million tonne (mt) of new capacity announced for 2015-16, only 140 mt is expected to be completed in time. Addressing investors in New York on Wednesday, Lakshmi Mittal, the company's chairman and chief executive officer, said that the administrative process in India was time-consuming and complex. The company expects to start construction in 2009 and expects iron ore allocation for both the projects this year, he added. The company's projects in India would require 600 million tonne of iron ore annually. India has iron ore reserves of 25 billion tonne, according to reports. Earlier this month, Aditya Mittal, chief financial officer, Arcelor Mittal, had said that the company would not give up on India plans despite the delay in projects. As far as the Jharkhand plant is concerned, for which the MoU was signed in October 2005, 83 million tonne of steam coal block has been allocated in Sereghara. The MoU for the Orissa project was signed in December 2006 and 84 million tonne of coal block allocated in Rampia. The sites for both the plants will be announced after a detailed project review, Mittal said in his presentation. The other concerns in India include environmental capability to answer community concerns, engineering capabilities, and the size and financial resources for large greenfield projects. Mittal also said that worldwide, the demand for steel is expected to grow by a minimum of 500 million tonne over the next ten years, "Although capacity expansion to meet this demand could be challenging.' The demand growth will be driven in particular by India, while China will slow down, he added. Mittal also said that the price of coking coal, a key ingredient in steelmaking, is expected to rise by 150% to 200%, driving steel prices up further. ArcelorMittal, which makes 9% of the world's steel, is well on its way to producing 150 million tonne of steel per year by 2012 and expects to be 75% to 85% self-sufficient in raw materials by 2014-15, Mittal added.