Eight proposed steel plants for which the State Government had signed memoranda of understanding (MoU) are hanging fire because of delay in land acquisition.
Projects which have been delayed because of land acquisition problems include the proposed steel plant by Posco India Limited at Paradip. Other projects which have not progressed include those by Pradhan Steel and Power Limited and Amtek Metal and Mining Limited in Cuttack district, Atha Mines Limited and Tecton Ispat Limited in Dhenkanal, SSL Energy Limited in Ganjam, Konark Ispat Limited in Jharsuguda and Monnet Ispat and Energy Limited in Angul.
Posco-India had signed an MoU with the State Government in 2005 for setting up a 12-million tonne steel plant with an investment of `52,000 crore. The capacity of the project was reduced to eight million tonne per annum to be implemented in two phases because of strong local resistance to land acquisition. The project has been delayed by more than nine years.
In one of the biggest foreign investment pullout, global steel major ArcelorMittal scrapped its `50,000 crore steel plant in the State last year over inordinate delay, problems in acquiring land and securing iron ore linkages. In 2006, ArcelorMittal had signed an MoU with the State Government to set up a 12-million tonne steel plant in four phases at Keonjhar.
The State Government had signed 50 MoUs with promoters for setting up steel plants out of which 31 plants have started partial production while 10 are under implementation.
Land acquisition has been withdrawn by the State Government for the proposed project by Sterlite Industries (India) Limited in Keonjhar district.
Official sources said the State Government has initiated the process to create a land bank of 50,000 acres for expeditious grounding of projects. Eight locations have been identified in 15 districts for creation of land bank. Some un-surveyed land patches are available in Dhamra region (between coastal regulation zone line) and saline embankments in Bhadrak and Balasore districts. The land will be brought to the revenue record and reserved for the bank.
Source: New Indian Express
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