NMDC buys land for Rs 14K cr plant in 'record' 10 months

State-owned NMDC today said it has acquired land for its Rs 14,000 crore upcoming steel plant in the tribal-dominated region of Chhattisgarh in "record" 10 months.

The country's largest iron ore producer has recently completed the acquisition of 1,788 acres of land for its maiden steel venture at a gross investment of Rs 90 crore. The company, however, still awaits handing over of some 157 acres of land.

"We have concluded the acquisition process in record 10 month. This was possible as Steel Minister Virbhadra Singh and Chhattisgarh Chief Minister Raman Singh led from the front. We carried the community along with us, instilled confidence in them for the plant," NMDC Chairman and Managing Director Rana Som told PTI.

The company is hopeful to start construction work for the steel plant in the calender year 2010.

Besides the support from the brass of Central and the State government, Som is learnt to have himself led the land acquisition process.

"The CMD was himself present in all the hearings of gram sabha. Apart from the compensation, he has promised jobs to every individual. The community has been made to understand the importance of the project to change their lives," a senior official involved in the land acquisition process said.

NMDC has offered compensation of Rs 9-12.50 lakh for every acre of land acquired to people, who parted with their assets.

The land acquisition for the project, which was announced two years back, started in October 2009.

Chhattisgarh is one of India's tribal dominated states. As much as Rs 1.54 lakh crore worth projects of global firms ArcelorMittal and Posco in states of Jharkhand and Orissa have been stalled for nearly five years now due to protest from the locals.