Tata Steel on Sunday cancelled its plan to set up a steel plant in Bastar, a tribaldominated district.
The company had signed a Memorandum of Understanding with the Chhattisgarh government in 2005 for setting up the 5.5 tonne annual capacity plant with an investment of Rs 19,5000 crore. The MoU, which ended in June this year was extended for some time but the company did not seek to renew it further because of protests and problems over land acquisition.
Tata Steel’s regional head of Chhattisgarh, Anand Sinha told TOI that the company was allotted 2,500 hectares of iron ore mine with an estimated reserve of 108 million tonnes of high grade iron in 2008.
“We failed to continue the process of drilling in the mines due to unfavourable law and order situation in the area. The government had extended support to us but the situation was not favourable,“ Sinha said.
The land allotted to Tata steel was notified tribal area, which could not be purchased by the company directly . Protests erupted when the government acquired the land from the villagers.
amar ujala newspaper 28/08/2016 : http://epaper.amarujala.com/