Tata Steel yet to get possession of full land at Kalinganagar

It's been 12 years since the company has been formally allotted 3,475 acres but is yet to get full possession

After 12 years of being allotted 3475 acres of land at Kalinga Nagar in Odisha to set up a 6 million tonne integrated steel plant, Tata Steel is yet to get possession of the full area- a factor which may hurt its plan to start work on the second phase of the project.

Out of allotted 3475 acres, Tata Steel is currently in possession of 2100 acres on which the company has recently operationalised 3 million tonne steel capacity in the first phase while the balance land continues to be occupied by the local villagers agitating against the project since 2004.

Tata Steel MD TV Narendran, during a trip to the city last year, had promised that work on the second phase comprising another three million tonne steel capacity would be taken up immediately after the completion of the first phase.

Though the first phase was commissioned in November, 2015, there is no sign of commencing work on the second phase at the ground yet.

The key components built by the company in the first phase include sinter plant, coke oven, blast furnace, steel melting shop (SMS) and hot strip mill (HSM). Except for the common facilities like SMS and HSM, the other units need to be replicated in the second phase apart from construction of cold rolling mill anew to produce finished steel products.

What is particularly notable is that the company has hardly made any progress in land acquisition and relocation of displaced persons in the last four years. After initial setback in land acquisition following killing of 14 tribals in police firing in 2006, the company had taken possession of 2100 acres land and rehabilitated 1000 of the 1234 families identified for displacement by the end of 2011.

After that the process of land acquisition and rehabilitation of the balance displaced persons has slacken off, pointed out a district administration official. This is because the left out area mainly constituted the villages which served as the epicentre of resistance against the project and also home to the agitation leaders, he said and added, “so it is taking time to convince these people to vacate their villages”.

A company spokesperson in a written reply to queries said, “We have settled 1113 families and our teams are in discussion with the balance 121 families (for relocation and resettlement)”.

“The focus is on successful commissioning and ramp up of 3 million tonne phase one capacity. We are committed to further expansion and will address the same in due course. We will be making our best efforts to settle families affected by our expansion program in phase 2”, he added.

However, sources said, besides the land issues, the current downturn in the steel market and developments on Tata Steel’s UK business are likely to delay the progress of work on the company’s second phase expansion.