Project delay hampers job creation in Jharkhand

The mega greenfield projects in Jharkhand could have created thousands of jobs in the state if implemented. Abundance of rich ores and minerals in Jharkhand had the domestic and foreign investors promise investment of Rs 25,235 crore during the financial year 2008-09.

During financial year 2008-09, the investment plan that attracted domestic corporate players to invest in Jharkhand, were in power, IT & ITES and hospitality. Investment plan in power sector had been Rs 25,000 crore while IT & ITES Rs 190 crore and hospitality Rs 45 crore.

Since Jharkhand was carved out of Bihar in 2000, the state government had signed 62 MoUs with steel companies like ArcelorMittal, Tata and Jindal for mega industrial ventures worth nearly Rs 2,00,000 crore.

The Jharkhand government had signed MoUs in 2004 and 2005 for investment in mega greenfield projects worth around Rs 40,940 crore. They were steel majors like Essar Steel (10 mtpa), Jindal Steel & Power Ltd ( at two locations of 5 mtpa each) and Jindal South-West Holdings Ltd (10 mtpa).

Similary, ArcelorMittal steel projects in Orissa and Jharkhand have been facing peculiar situation since 2-3 years. In Jharkhand, the company got ion ore mines, but do not have land whereas in Orissa they have land, but are yet to get mines. With total planned investment in both the states standing at Rs 43,050 crore, its implementation could have generated employment for nearly 5,500 people directly and 20,000 people indirectly, industry source said.