Land transfer row hits Tata Steel's Gopalpur project

The steel maker has taken advanced possession of land & is almost through with boundary wall construction

The row surrounding transfer of land for industrial park proposed at Gopalpur in south Odisha has seemingly affected starting of construction activity by Tata Steel which is the anchor tenant for the project.

With state government officials still in a dilemma on whether the land transfer deed needs to be executed in the name of Tata Steel or Gopalpur Special Economic Zone (SEZ), work on project has suffered a delay. This is despite the fact that the steel maker has taken advanced possession of land and is almost through with boundary wall construction.

"Regarding ownership of the land title, the matter has now been referred to the law department. The department will offer its views on whether the land has to be transferred in the name of Tata Steel or Gopalpur SEZ”, said a top official source.

Another official in the know of the matter said, “There is a general consensus that land should be transferred to Tata Steel since it was originally alloted to them for the steel project. But a final call will be taken after obtaining views of the law department.

Moreover, with the state specific SEZ policy still pending, it cannot be decided at the moment if IPR (Industrial Policy Resolution) benefits would be applicable to the project in case the land transfer is made in the name of Gopalpur SEZ.”

"The chief secretary has issued directions to Idco and concerned departments that land transfer process has to be completed within three months so as to enable Tata Steel to commence construction work”, he said.

The official informed further that establishment of SEZ needs a minimum land area of 2500 acres. The industrial park is being set up on an area of 2952 acres.

In a written communication to the state government dated November 29 last year, Tata Steel stated that it will be unable to furnish the detailed feasibility report on the project unless the entire land is transferred in their favour.

Tata Steel officials could not be reached for comments on the matter.

The state government had asked the steel company to furnish the detailed land utilization plan, implementation and investment including the time schedule in respect of the SEZ project.

Land at Gopalpur was acquired by Odisha Industrial Infrastructure Development Corporation (Idco) for an integrated steel mill originally proposed by Tata Steel in 1995. But later, the steel maker shelved the steel plant and instead proposed to construct a 50,000 tonne per annum ferrochrome plant and one 400,000 rebar mill over an area of 400 acres of land along with the cluster of project over an area of 2952 acres.

 Tata Steel would invest Rs 1,000 crore on these two projects which would initially create employment for 1000 people. While the ferroalloys plant will cost about Rs 200 to 250 crore, the bar mill will be set up at an investment of Rs 750 to Rs 800 crore.