Tata, Jamshedpur?

On July 1, Samata Party MLA and Land Revenue Minister Madhu Singh upped the ante, raising the demand for Rs 5,437.43 crore at a press conference. While he directed Finance Secretary Devashish Gupta to review the matter, he has asserted that Tisco would have to pay the money. But since then, realising what’s at stake, both sides have moderated their stand.

Last week, Industry Minister P.N. Singh was talking about ‘‘the good relationship’’ shared by the government and Tisco and adding the company could always approach ‘‘the industrial committee headed by the Chief Minister’’ if it had ‘‘any objections’’. Tisco, of course, has more than an ‘‘objection’’, its officials calling the demand ‘‘totally unacceptable and full of false accusations’’. Soon after Singh’s press conference, a top manager told The Indian Express: ‘‘If the government compels us to pay this huge sum for renewal of lease, the company may prefer to sell every brick and iron at Jamshedpur and set up modernised plants with a township elsewhere.’’

But officially, spokesperson Sanjay Singh points out they have had no written intimation from the state government over the Rs 5,437.43-crore demand. He adds: ‘‘There are four categories of lands granted to the company on lease. There is no dispute over the land where plants are located. Let the renewal of its lease be made by the government. And a retired HC judge be appointed to settle the dispute over the three other categories of land.’’

The land lease was granted by the erstwhile Bihar government, as per a directive of the Supreme Court, for 40 years in 1984, with effect from January 1, 1956. As a result, it expired on December 31, 1995. Tisco sources say they have been trying to renew the lease since, but to no avail. When the Laloo Prasad Yadav regime did nothing, the company moved court. In July 1999, the Patna High Court told the state to take a decision on the matter ‘‘within a specified period’’. Still, the Bihar government didn’t renew the lease.

After Bihar was bifurcated, the Jharkhand High Court issued notices to the new state on the matter. The government has been seeking one extension after another in court and the latest hearing was scheduled for July 2. Just one day before that, Singh released an eight-page document demanding Rs 5,437.43 crore from Tisco for renewal of the lease. However, in court the next day, the government again sought more time to file a reply, though sources say the document may finally become a part of its affidavit.

The document alleges that Tisco — which was given land for production (744.16 acres), housing (1,418.94 acres), public utilities (2,235.39 acres), right to sub-lease (4,301.75 acres) and vacant land (4,008.35 acres) — had violated terms of agreement of the lease. These stated that before changing the form of any land or sub-letting it, Tisco would seek the government’s permission. The document says: ‘‘There are hundreds of examples where Tisco transferred land to different companies and individuals for setting up industries, residences, commercial establishments, stadiums and clubs without taking permission from the state government.’’ It adds that Tisco used ‘‘influence’’ to keep this under wraps.

Further, the document says, the Tisco-government agreement made it clear that the company would pay the money due to the state. But instead of doing that, it charges, Tisco always takes recourse to litigation. ‘‘Even today there are eight cases in which the government’s Rs 22 crore is to be realised from Tisco.’’

The document cites examples like setting up of Lafarge cement company on 186.16 acres and golf club on 90 acres of vacant land, plus ‘‘sale’’ of 30 acres of land to NICCO for a ‘‘water kingdom’’, to buttress its claims. Tisco had not given any account of these lands to the state government till date, the paper claims. The document also says that the money being charged by the state government for the land — fixed at Rs 44,000 per acre in 1984 and around Rs 30 lakh per acre now — was too little and was causing ‘‘loss to the tune of billions of rupees’’ to the government. It adds that Tisco ‘‘has lost direction’’ and was now trading in land, ‘‘which is more profitable’’.

A top Tisco manager finds this claim ‘‘mindless’’, pointing out: ‘‘The value of land in Jamshedpur has grown over the years not due to the government’s munificence, but due to the industrious Tatas.’’

The Opposition has jumped to Tisco’s defence, flaying Marandi for putting Jamshedpur in jeopardy. ‘‘The CM is going abroad to invite investment in the state but the Tatas who have made huge investments here are being pressured to cough up an amount no company can pay,’’ PCC chief Pradeep Balmuchu said.