| Mittal Steel India, which is in the process of readying its rehabilitation and resettlement (R&R) package for its 12 million tonne Orissa project, will consider issue of shares and land-for-land as part of its compensation to land-losers.
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| Sanak Mishra, chief executive officer, Mittal Steel India said, “The Orissa government’s R&R policy includes issue of shares as a means of compensation and if the people want it, we will do it. But that will happen at the implementation stage and we have to see the legal standpoint and the mechanism.”
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| Mittal Steel hopes to finalise the draft R&R package and make presentations to the Orissa government by month end. “If the Orissa government wants to incorporate something, we will look into it.”
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| The state government’s policy mentions convertible preference share as a compensation option. It says that at the option of the displaced family and subject to the provisions of relevant laws in force, the project authority could issue convertible preference shares or secured bonds up to a maximum of 50 per cent out of one-time cash assistance.
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| “There were also other physical issues being considered like alternative land for the displaced people. We will, however, have to assess how much land is required,” said Mishra.
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| The Orissa rehabilitation guidelines do mention provisions for homestead land or house building assistance or assistance for self-relocation.
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| After finalising the scheme in consultation with the state government, Mittal Steel plans to embark on a communication programme with the land-losers.
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| The project site is a mix of government and private land. The 12 million steel plant at
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| Keonjhar would require around 8,000 acres, which includes 1,000 acres for the captive power plant and 1,000 acres for the township.
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| Mittal Steel is also in dialogue with the Orissa for iron ore mines. Various options are being explored, including arrangement with the Orissa Mining Corporation (OMC), a state-owned mining corporation.
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| “Talks are at an exploratory stage and it was too premature to talk about it. An arrangement with OMC could enable Mittal Steel to go through captive iron ore mine allocation process, which was one of the stumbling blocks for the company’s Jharkhand project,” Mishra added. Mittal Steel requires around 600 million tonnes of iron ore over a 30-year period for its steel plant. |
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