SAIL-NMDC Bastar steel project lands in trouble

The villager are refusing to part with their land for the project that was launched by the PM three days ago

The ultra-mega steel plant to be set up by the state-run companies Steel Authority of India Limited (SAIL) and National Mineral Development Corporation (NMDC) in Chhattisgarh’s Bastar region has landed in trouble with villagers asserting not to give their land.

The green-field project proposed at Dilmili — about 35 kms from the divisional headquarters of Bastar — was launched by the Prime Minister, Narendra Modi during his Dantewada (Bastar) visit on Saturday. In his presence, both the companies inked a deal for the 3 million tonne plant that would come up with an investment of Rs 18,000 crore.

The Chhattisgarh government would also be a partner in the project. Two special purpose vehicles (SPVs) would be set up, one for the project and another for the mining. In the project SPV, SAIL would have equity of 74 per cent while NMDC would hold remaining 26 per cent. The state government would facilitate all required clearances besides acquiring land for the project.

Before the process could take off, villagers had come out in protest against the steel plant. “We (people of Dilmili) do not wish to take risk given the past experience of land acquisition for Tata Steel, Essar and NMDC projects,” Lakhmuram Mandavi of Dilmili said. Those who had given land for the projects were still struggling for job and compensation, he added.

Mandavi said if the administration forcefully acquired land, the villagers were prepared to protest it to “any extend” and would prefer to give life than land.  The villagers had mobilized under the banner of Adivasi Mahasabha. “The authorities were aware of strong sentiments against corporate in Bastar and hence the agreement for Dilmili plant was inked in presence of Prime Minister,” Mahasabha National President Manish Kunjam said. The move was a backdoor entry that people would not entertain, he added.

According to Kunjam, the district administration kept the local people in dark about the project. “The officials concerned neither discussed with the villagers about the project coming up in their land nor informed about the rehabilitation packages,” he added.

The state government however saw no logic in the protest as it claimed that the site for the project was yet to be finalized. “At Dilmili, there is 600 acres of government land, so it is a natural choice but any other place can also be finalized,” Bastar District Collector Amit Katariya told Business Standard.