Singh added that as per the MoU JSW signed with the Jharkhand government, the construction of the steel plant should have started by now.
MUMBAI: Despite having secured the necessary clearances, the proposed Jharkhand plants of Sajjan Jindal-promoted JSW Steel and Naveen Jindal-promoted Jindal Steel and Power have been delayed due to land acquisition issues.
RP Singh, chief executive (Jharkhand project), JSW Steel, said that the company had obtained all mandatory clearances, including those related to coal, iron ore mines and water. “The only problem at this point is the acquisition of 6,500 acre for the project,” he said.
Singh added that as per the MoU JSW signed with the Jharkhand government, the construction of the steel plant should have started by now. The 10-million tonne plant is scheduled for completion by 2014.
“We will be able to meet the phase-I deadline of 2011 only if we start construction by January next year. We hope to complete the land acquisition by then,” Singh said.
He said in the Chhota Nagpur area, the Chhota Nagpur Tenancy Rule is applicable as the region has a lot of tribes. “The Chhota Nagpur Tenancy Rule overrules the land acquisition rule and that is creating problems for the company,” he said.
JSW’s director (finance) Seshagiri Rao added that the company was not in a position to set a time limit for the completion of the land acquisition process.
On its part, Jindal Steel and Power Ltd (JSPL) needs 3,100 acre for the project. So far, it has already acquired 600 acre from the government and 150 acre from villagers. The remaining 2,350 acre, however, has proved elusive.
JSPL vice-president Avijit Ghosh said land acquisition was a time-consuming process. “I am not denying that there has been a delay in the process. It is taking longer than we expected and we are trying to expedite the process,” he said.
Ghosh added that the negotiations with villagers were on to acquire the remaining land.
“Land owners are not very keen on parting with their land. But we are trying to persuade them. It’s not an easy process and we have to be patient. We hope to complete the acquisition process by next year,” Ghosh said.
The company plans to set up a 6-million tonne blast furnace and a 1,000-mw power plant for an investment of Rs 15,000 crore. In the first phase, a 3-million tonne furnace would be set up by August 2010. Another 3 million tonne would be added by 2012.
shubhashish@dnaindia.net
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