The Chhattisgarh government is looking for land in the Bastar region for the corporate planning to invest, even as NMDC Steel Plant (NSP) is all set to start its steel facility in the area.
A disinvested entity of NMDC, NSP is soon going to commission its 3 million tonne per annum (MTPA) greenfield steel plant set up in Bastar district’s Nagarnar, about 350 km from Chhattisgarh's capital.
NMDC would feed the raw material to the plant from its two mechanised iron ore mines located about 100 km from the plant in Dantewada district. The plant will produce high-quality hot-rolled coils, plates, and sheets using state-of-the-art technology while achieving the highest level of energy efficiency, NMDC officials said. The steel plant has bestowed investment opportunities for the private sector to set up auxiliary industries in the region. "Over a dozen companies had shown interest in investing in Bastar, while seven had signed agreements with the Chhattisgarh government to expedite the plan,” a senior industry department official said. Now, providing land to the investors after inking the agreement has become a major challenge for the authorities.
"The state government is looking for land that can be allotted to the industries that have already signed pacts," said B R Nikunj, general manager with the state industry department. Nikunj said the department had identified land near Saalepal in the Tokapal development block, adding that the department had to withdraw following a strong protest from the villagers. It had planned to allot 106 acres and 89.52 acres of land to two different firms with interests in steel, sponge, and pellet manufacturing.
As the department started the land acquisition process, the villagers lodged a strong protest and forced the officials to return. Being an election year as Chhattisgarh goes to the Assembly polls in November and December, the officials preferred not to take the risk of villagers’ revolts that could resent the political dispensation. “The ruling Congress has to be more sensitive and cannot acquire land even if there is a small protest given the precedent it has set earlier," said a senior political analyst based in Jagdalpur, the divisional headquarters of Bastar.
Soon after coming to power in 2018, the Congress government headed by Bhupesh Baghel ordered the return of the land of farmers in Bastar acquired by the government in 2008 for the proposed Tata Steel plant project in the Lohandiguda block of the region. Subsequently, Tata Steel announced it was winding up its Chhattisgarh project.
The officials admit that acquiring land for private industries would be a big test. The department has 35 hectares of land in Gurram village, Tokapal block. But the industrialists are reluctant as the area reels from water shortage.