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Fate of mega projects in Orissa hangs in balance

Akshaya Kumar Sahoo

Orissa may have attracted the highest amount of investment in mineral-based industry sector, but their fate is now hanging in balance because of delay in land acquisition, availability of raw material and water. This is the unanimous view of the captains of the global steel majors.

Speaking to reporters on the sidelines of a two-day International Iron and Steelmaking Conference, which began in Bhubaneswar on Friday, ArcelorMittal India Limited chief executive officer (Greenfield Projects), Sanak Mishra, said: "Land acquisition is the bottomline for any industrial project, followed by access to raw materials and water resources, which are major challenges for all the green-field projects."

Mr Mishra, however, claimed that his company’s 12-million tonne steel plant project has made significant process as the detailed project report is almost ready. "We have also obtained railway transport clearance and hold assessment camps and gram sabhas for land acquisition. Talks are on with the National Highway Authority of India (NHAI) to access roads", he remarked. He added that for mining, the company would go through the process for prospecting license. "We expect the government to recommend for the mining lease," he hoped. Major mining blocks in Orissa (Khandadhar, Malangtoli and Thakurani) are embroiled in litigation, with some of them having 250-plus applicants.

Executives of over 30 steel companies planning to set up their industries in the state are participating in the conference to deliberate on the challenges and opportunities in the iron and steel making industry.

Posco India chairman-cum-managing director, Soung Sik Cho, also echoed his concern in line with Mr Mishra. "Despite their commitment to welfare and development of the local people, most of the green field projects have not much progressed. Land, infrastructure, raw material linkages are vital to expedite the process," said. Posco is facing a violent protest from the land-loser villagers threatened with displacement at the proposed site near Paradip Port in Jagatsinghpur district. ArcelorMittal and Posco have lined up investment in excess of Rs 1 lakh crore to set up 12-million-tonne steel plant each.

Posco’s Rs 52,000-crore project happens to be the biggest foreign direct investment proposal in the country.

Most of these green field integrated steel projects in the state face problems such as statutory clearances and infrastructural bottlenecks. Finance minister P. C. Ghadei, who graced the occasion as the chief-guest, blamed the opposition parties for derailing the project by indulging in cheap politicking, without bothering about the greater interests of the state and its people.

"People are opposing these projects only for the sake of opposition. While locals in the proposed areas are supporting the plan, some outsiders are instigating them to protest for political motives," the minister said.