Ranchi, March 29: The state’s decision to not process mining leases of prospective investors unless they take up groundwork has created quite a flutter in the corporate sector. The list of big players include ArcelorMittal, Tata Steel, JSW Steel and Essar Steel.
The “execution of groundwork” includes procurement of land, construction of boundary walls and starting civil work by the prospective investors, who have promised to invest several thousand crores in Jharkhand.
A senior official of the state mines and geology department said on the condition of anonymity that they were not going ahead with the final allotment of mining leases for iron ore and coal among other minerals unless the companies submitted affidavits, saying they had spent about 20 per cent of the proposed investment on ground work.
“Let them first do the groundwork. The state will then surely give them mining leases. But at this juncture, we are not in a position to process the leases despite the allocations and the Centre’s nod,” he said.
As far as investment by the corporate companies is concerned, everything is stuck up in want of required land. Moreover, the companies are apprehensive of investing much in greenfield projects due to meltdown.
For example, JSW Steel Jharkhand Limited has deposited a whopping Rs 8.42 crore with the state revenue and land reforms department against procurement of government (gair mazurua) land in Sonahatu block in Ranchi. The company has proposed to set up a 10 MTPA steel plant there.
“We deposited the amount in 2006. Our earlier proposed site was Icchagarh-Nimdih block, but we decided to shift the project to Sonahatu due to several reasons and applied for land in May 2008. But even after a year, things are moving at snail’s pace,” said R.P. Singh, the chief executive officer of JSW Steel Jharkhand Limited. The company was promised 999 hectares of Ankua iron-ore reserve in West Singhbhum and 69 per cent of 1,245 hectares in Rohne coal block.
Further, the company representatives said the state was bound to arrange land for them as it has signed MoUs. But the state is taking two things into account here.
First, the MoUs say that the companies should spend about 20-25 per cent of the total investment promised before the mining lease will be granted. Secondly, as per the provision in national policy, 70 per cent of the required land (including government land) will have to be first arranged/purchased by the respective companies while the remaining 30 per cent of private land will be acquired by the government.
