Lakshmi Mittal, Ratan Tata and Naveen Jindal, all big names in steel industry, are appeared committed to make Jharkhand the base for their three major steel plants.
The planning is in pipeline but now the projects are looking gloomy. The interests of first two promoters are clashing and government’s approach is delaying the whole process.
Earlier, the steel giants and the Jharkhand government had signed MoUs between January and October 2005. According to the MoUs, by the year 2020, there will be a growth in demand of 110 million tones for steel in the country. Currently it is on 34.5 million tonnes.
The Mittals as well as Tatas are ready to invest Rs 40,000 crore in Jharkhand. They are ready to set up 12-million capacity steel plant along with a township with each plant. On the other hand, the Jindals is ready to invest Rs 12,000 crore to establish steel plant.
But until yet, neither the state government nor any one of these steel giants have set a time frame for the implementation. The MoU says that Mittal and Tata Steel lays down their aim to develop their projects in two phases of six million metric tonne each till 2015.
But the fact is that no one from these three investors have given the require lands, water, coal and iron ore. Mittal Steel’s Sanak Mishra said on this matte;
Such heavy investment can’t be made without ascertaining details of land, water and mineral supply.
The government is busy in saving its seat in the state and Chief Minister Madhu Koda’s government preferred to look the other way. While the these companies wanted to get things going as soon as possible. The political machinery is busy in playing political game in the state.
According to the reports, the State Industrial Policy was notified in 2002 and it has been lapsed in 2006.
Still, the Koda government has not cared to issue another one. The government has not taken any step in this direction to establish resettlement and rehabilitation policy to smooth the progress of the plans of these investors.
The Indian Express has reported that Mittal and Tata have not yet finalized its mapping of the sites. However, Jindal is planning to commission its first plant by 2010.