Steel firms eye Jharkhand big time

Tisco expresses concern

Tata Steel's recent comments on prospective investors has stemmed from a series of investments mooted by companies like Essar Steel, Jindal Vijaynagar Steel, Ispat Industries, apart from Mittal Steel.

Sajjan Jindal of Jindal Vijaynagar Steel said, the company had proposed a five million tonne mining, beneficiation and pelletisation plant in Jharkhand for an investment of Rs 2,000 crore.

The project was part of the steel plant planned in West Bengal for Rs 12,000 crore, which was now being split for the iron ore mines. Jindal said, the steel making would take place in West Bengal.

Ispat Industries, it was understood, was planning a three million tonne plant in Jharkhand. The feasibility study for the project was complete.

Hy-Grade Pellets, the joint venture between Essar Steel and Stemcor, has already signed an MoU for a three million tonne plant.

Further, steel giant Mittal Steel, has expressed interest in setting up a plant. However, top officials of Jharkhand government said, Mittal Steel was yet to indicate the capacity of the proposed steel project or the iron ore required for the project.

The proposed investments by the companies triggered some comments by B Muthuraman, managing director Tata Steel at the company's inuaguration of one million tonne expansion project.

He appealed to chief minister Arjun Munda, who was present at the meeting, that while selecting any company for investing in the state, the government should take care of the interest and well being of the state and its people.

In this context, Muthuraman pointed out the contributions of Tata Steel, over the past 98 years.

The company has worked out that Tata Steel has paid Rs 20,000 crore by selling cheap steel in the regulated framework, Rs 15,000 crore in development of Jamshedpur and Rs 10,000 crore towards corporate social responsibility.

Top Jharkhand government officials said that the companies have expressed their interest in setting up plants in the state and will be given equal weightage.

"Why shouldn't we invite them. It will bring employment to the state" said officials.

In the same breath state government officials said, "We recognise that Tata Steel's contributions, but Jamshedpur is not the only town in Jharkhand and Tata Steel is standing on a firm ground."