The Chhattisgarh Government has assured country’s largest private sector steel maker Tata Steel ltd. (TSl) that it would soon demarcate land required for its proposed 5.5 mtpa plant at lohandiguda area in state’s insurgency-hit Bastar district.
The Chhattisgarh Government's assurance came at a meeting between steel makers and the Steel Ministry, according to minutes of the meeting available in the Ministry's website.
"The TSl is setting up a 5.5 million tonne per annum (mtpa) integrated steel plant in Bastar. The identified land for the project is to be demarcated by the State Government before taking possession by the company," the minutes read.
"In response to this, the representative of Chhattisgarh informed that the matter relating to demarcation of land is under process and is expected to be completed very soon," it added.
Tata Steel had signed memorandum of understandings (MoU) with Chhattisgarh Government in 2005 for setting up a greenfield plant in two phases. The State had also accorded approval for drawing water from river Sabri and Railway Ministry granted an in principle nod for the railway corridor.
The MoU has been renewed a couple of times since then and the current tenure of the present one ends by 2014.
Tata Steel project has been delayed mainly by intensified protests by the Communist Party of India (CPI) of which a local influential leader Manish Kunjam vehemently opposed to the project. State Government officials now claim that Government wants the land acquisition process to be completed totally peacefully and finally the project has back on track.
Though, there is no sign of good news for Essar Steel which had also signed an MoU with the State Government in June 2005 for setting up an integrated steel plant at Dhurli and Bhansi area in state’s one of the worst insurgency-hit districts Dantewada.