Jamshedpur: The Jharkhand government has issued a show cause notice to Tata Steel seeking explanation in regard with the memorandum of understanding (MoU) it had signed with the government to set up a greenfield project in neighbouring Seraikela-Kharswan district in 2005.
A P Singh, Secretary (Industry), Government of Jharkhand, told newsmen that Tata Steel had signed two MOUs with the state government - one for the Seraikela-Kharswan project and the other was for the expansion of the brownfield project situated at Jamshedpur.
The company had already invested between 22-25,000 crores for Jamshedpur plant and expansion work was near completion.
Singh complained that the company has been spending its energy behind the ongoing modernisation program at the Jamshedpur plant.
The state government has also allotted them a mine, he said admitting that land acquisition remained an issue for the greenfield project.
Asked about the progress of steel giant Arcelor Mittal's project in the state, Singh said the state government has sanctioned them water and iron-ore mine and the company has applied for land in Bokaro district.
"We have recommended the district administration for consent award to the company and the matter was currently with the Revenue department to take a decision in this regard," he said.
Elaborating further about the consent award, he said the government would help the company to acquire the required land as per the negotiated rate it had with the landowners.
Singh, who was in the steel city to take part in a program organised by the Singhbhum Chamber of Commerce and Industry (SCCI), said currently the mineral-rich state has been contributing 25 percent of the total 70 million tonnes steel being produced in the country.
"We are already producing 13 million tones steel in the state and will touch 18 million tones mark by March next," he said.
Of the total 70,000 crores investment recorded during the last five-six years, he said steel sector alone contributed for half of the investment (Rs 35,000 crores) while the rest by other sector such as automobile, cement etc.
However, Jharkhand's new Industrial policy, which has already been notified and likely to be gazetted soon, has focused on downstream industries rather than steel.
"We are rather encouraging sectors such as automobile, agro, etc as it were all linked to steel sector," he said.
First Published: Monday, August 6, 2012, 22:55