December 02, 2008

Land issues delay JSPL & JSW plants in Jharkhand

DNA reported that the proposed Jharkhand plants of JSW Steel and Jindal Steel and Power have been delayed due to land acquisition issues.

Mr RP Singh CEO of JSW Steel Jharkhand said that “The Company has 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 that as per the MoU JSW signed with the Jharkhand government the construction of the steel plant should have started by now. Mr RP Singh said that “We will be able to meet the phase I deadline of 2011 only if we start construction by January in 2009. We hope to complete the land acquisition by then. He said that 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.”

JSW’s 10 million tonne plant is scheduled for completion by 2014.”

Jindal Steel and Power Ltd needs 3,100 acre for the project and 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.

Mr Avijit Ghosh VP of JSPL said that “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 added that the negotiations with villagers were on to acquire the remaining land. He said “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.”

JSPL plans to set up a 6 million tonne blast furnace and a 1,000 MW power plant for an investment of INR 15,000 crore. In the first phase, a 3 million tonne furnace would be set up by August 2010 and another 3 million tonne would be added by 2012.