Chhattisgarh govt renews MoU with Tata Steel

Tata steel has got another breather as the Chhattisgarh government has renewed the Memorandum of Understanding (MoU) it had signed for setting up a mega steel plant in Bastar region for the third time.

The steel major is setting up a 5.5 Million Tonne Per Annum (MTPA) Greenfield integrated steel plant in Lohandiguda area of Bastar district. The company has inked a Memorandum of Understanding (MoU) with the Chhattisgarh Government in on June 6, 2005. The MoU was valid for three years.

In 2008, the MoU for renewed for two years and later it was extended for another two years as the state government failed to give possession of land to the company after acquiring it from the villagers. The Tata Steel had deposited the required amount for land acquisition and compensation to be paid to the villagers.

“The state government had renewed the MoU of Tata Steel till 2014,” state industry minister Rajesh Munat said in the state legislative assembly on Wednesday. The government is in process of taking possession of the land from the villagers and hand it over to the Tata Steel, he added.

The Tata Steel would require 2,044 hectares of land for setting up the steel plant. As the proposed plant area comes in a tribal belt, the state would acquire land on behalf of company as per the norms and allot it on lease.

The company has reportedly deposited Rs 70 crore with the administration that would be paid to the villagers as compensation. The Bastar district administration has paid Rs 42.07 crore to the villagers and was due to pay Rs 27.35 crore.

Munat said the state government was also considering the application of Essar Steel requesting renewal of it MoU singed in July 2005. The company has proposed to set up a 3.2 MTPA steel plant near Bhansi in Dantewada district.

“The company has submitted application requesting renewal of the MoU and since it was making progress in the project, the state government was considering extending it,” Munat added.