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This is an archive article published on February 12, 2008

Jharkhand go-ahead for Mittal greenfield project

Arcelor Mittal’s greenfield project in Jharkhand has moved another step forward with the state government recommending...

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Arcelor Mittal’s greenfield project in Jharkhand has moved another step forward with the state government recommending to the Centre to allocate it Meghadburu-Karampada ore mines in West Singhbhum district.

“We have done our job. Now it is up to the Union Mines Ministry,”a highly placed source told The Indian Express on condition of anonymity. Asked if the recommended mines were free of litigation, the state Director (Mines) Bipin Behari Singh said: “As far as we know, it is free from litigation”.

The 500-hectare Meghadburu-Karampada mines contain nearly 600 million tons of reserve. On October 8, 2004, L.N.Mittal, owner of the company, had inked the MoU with the state Government envisaging an investment of $11.5 billion (Rs 40,000 crore) for setting up a 12 million capacity greenfield steel plant, besides a township, a technical institution and a 2500-MW thermal power plant.

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Although Arcelor Mittal is yet to acquire land, the world’s largest steel maker had identified the site, 45 km from Ranchi, and informed the state Government. The site lies along the border of Kamdara block in Gumla district and Torpa block in Khunti district. The area is sparsely populated and is close to the Govindpur railway station.

Near the site is the Koel river from where the company plans to pump out water for its plants and township. Aware of it, a group of tribals under the banner of Koel Karo Jan Sanghatan had held a dharna there on February 2 demanding withdrawal of the project. “We will give our life, but not the land,” said Sangathan secretary Pushpa Horo.

But another group comprising mainly non-tribals has come up in support of the project. “We welcome Mittal,” said Awdhesh Sahu, a resident of Govindpur. “Once the plant comes up, backwardness of this area will go,” he said.

Congress MP from Khunti Sushila Hansda backs the project. “We will ask the company to provide best possible rehabilitation and restllement to the oustees,” said Hansda. The state Government has promised to help the company acquire 25,000 acres and recommend grant of lease of coal and 600 million tons of iron ore reserve for a period of 30 years and 400 mts reserve for another 20 years.

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So far, the company had only got the coal block, which was allotted by the Union Coal Ministry at the recommendation of the state government last year. “We are thankful to the government for this”, said company’s India-based CEO Sanak Mishra.

The state Government has also recommended Raika and Latua RH mines in West Singhbhum district to the Ispat Industries Ltd owned by Mittal’s brother Vinod Mittal. IIL too is planning to set up a steel plant in this state.

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