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On the heels of Posco and ArcelorMittal pulling out of $18-billion projects, domestic steel firm Monnet Ispat and Energy is considering scrapping its proposed 1.5 million-tonne plant in Jharkhand.
The city-based sponge iron and power producer is considering withdrawing the plans for want of raw material, water and land — the same reasons cited by both ArcelorMittal and Posco.
“Yes, it is correct that we are seriously considering (this),” said Amitabh Mudgal, senior vice-president (marketing and corporate affairs). Monnet Ispat, which is setting up a 1.5 mtpa steel plant in Chhattisgarh, had signed a memorandum, of understanding with the Jharkhand government in 2003 to set up a DRI-based 1.5-mtpa steel plant at Hazaribagh with Rs 1,400 crore investment on 500 acres.
<B>Government flip-flops</B><BR>
Monnet’s problems started with land acquisition. Following signing of the memorandum, the Jharkhand government created a nodal agency, Jharkhand Infrastructure Development Corporation (Jidco) to acquire land for the project. Monnet had deposited the desired amount. However, after three years, Jidco was dissolved and Monnet was advised to buy land directly.
“We started to work on land acquisition in Hazaribag and were later told water was not available at that site. So, we changed the project site to Chas Block in Bokaro district with assurance from the state that required water will be made available from the Damodar river,” Mudgal said.
However, when the company was ready to register the land following the “tedious process of verifying ROR (record of rights) and making all efforts”, the state government informed it that water could not be made available from the river.
For iron ore supply, Monnet said, the state had also backtracked from its earlier promises. Mudgal said the state government had recommended to the Centre for allocation of the Ghatkori Iron Ore Mine to Monnet Ispat, only to withdraw later, saying the area had been reserved for state-owned firms. Monnet took the matter to court but lost the case.
“It seems Jharkhand does not require industry. We briefed all this at the inter-ministerial group meeting in the ministry of steel that in the absence of water and iron ore, it is not possible for us to move ahead,” Mudgal said.
However, unlike Posco or ArcelorMittal, which pulled out their cumulative Rs 80,000-crore investment proposal in Jharkhand and Odisha, respectively, Monnet does not want to lose hope in Jharkhand even now.
“In case the government of Jharkhand assures us for water and other inputs, we still are open to go ahead with the project in Jharkhand,” Mudgal said.
