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| State may cancel MoUs with four steel players |
| BS Reporter / Kolkata/ Bhubaneswar May 31, 2010, 00:26 IST |
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The state steel and mines department has tightened the noose on four non-serious steel players who have made unsatisfactory progress on their proposed projects in Orissa after entering into MoUs (Memorandum of Understanding) with the state government.
The four steel companies are Atha Mines Private Ltd, BRG Iron & Steel Company Ltd, Tecton Ispat Private Ltd and Deepak Steel & Power Ltd.
They have been asked to expedite work on their projects and furnish a report to the state government on the state of land acquisition and actual investments grounded as soon as possible, failing which their MoUs may be cancelled.
“These four companies have made almost negligible progress at the ground level and we have asked them to expedite work or else we have to do a rethink on their projects”, said state steel and mines secretary Manoj Ahuja after a review meeting.
Both Deepak Steel & Power Ltd and BRG Iron & Steel Company Ltd had signed MoUs with the state government in May 2005. While Deepak Steel & Power proposed to set up a 0.25 million tonne per annum (mtpa) steel plant at Topodih (Barbil) entailing an investment of Rs 195.31 crore, BRG had announced a 1.25 mtpa steel plant at a investment of Rs 960.33 crore.
Similarly, both Atha Mines and Tecton Ispat had entered into MoUs with the state government in January 2008. Atha Mines intended to set up a 0.25 mtpa steel unit at Dhenkanal at a cost of Rs 291.6 crore and Tecton Ispat proposed a 0.25 mtpa steel plant at the same location at an investment of Rs 227.13 crore.
Of the 49 companies who have inked MoUs with the state government, Ahuja said, “30 companies have made significant headway on their projects.
There are 10 other companies which have started work but haven't made satisfactory progress due to issues related to land acquisition, grant of mining lease and water allotment.”
The state steel and mines department is contemplating to renew the MoUs of these 10 companies and has assured to extend all possible help to overcome the hurdles on their projects.
While extending the MoUs, the state government will insert two clauses for these steel units namely offering employment to locals and setting up of Industrial Training Centres (ITCs) to train local youths”, he added.
The progress of as many as 24 steel projects were reviewed on Saturday. The other companies whose project status was reviewed include Visa Steel, JSL (formerly Jindal Stainless Ltd), Monnet Ispat & Energy Limited, Maithon Ispat Ltd, Shyam DRI Power Ltd, Rungta Mines Ltd, MGM Steels Ltd and Eastern Steel & Power Ltd to name a few.
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