Essar's Bastar steel plant deal tomorrow

The Chhattisgarh government will sign a memorandum of understanding (MoU) with the Essar group for a steel plant in the Bastar district of the state by the latter, on July 5.

Last month, the state government signed an MoU with the Tatas, who also plan to set up a steel plant in the district. Chhattisgarh Chief Minister Dr Raman Singh discussed the plans on investment in a meeting with the Bastar Development Authority on Saturday.

"The two mega steel plants would not only expedite socio-economic development in Bastar and generate employment opportunities for locals, but will also utilise the iron ore stocks of the district in their plants," Singh told Business Standard.

"Impressed by the new industrial policy of the state, the Essar group has proposed to invest Rs 5,000-8,000 crore in Bastar," Singh added.

However, he said the capacity of the plant and the schedule for installation would be disclosed later.

In spite of Bastar being a den of Naxalites, Singh perceived no threat to industries and said, "The anti-Naxal movement, launched by villagers, reflects their desire to join the mainstream development. The tribal movement would usher in a new era of trust and development in Bastar."

"The development of the region was a top priority of the state government. Elected representatives, the government machinery and employees should realise the needs of tribals and address their problems with sensitivity," Singh added.

A bamboo development authority would also be constituted for promoting bamboo cultivation and bamboo-based industries in the state.