Setting up of Steel Plants

The Minister of Steel, Shri Beni Prasad Verma has said that Steel is a de-regulated sector and Memorandum of Understanding (MoU) is purely an understanding between the concerned State Government and the respective steel investors. Ministry of Steel does not monitor the progress of MoUs. As per the available information in the Ministry of Steel, the details of MoUs signed by various State Governments during the last three years are given at Annexure-A.

In a written reply in the Lok Sabha today Shri Verma said, it is a fact that several companies could not start setting up plants as per their respective MoUs. Major factors limiting the progress of the steel projects in the country include non-availability of adequate land, raw material linkages, environmental clearances besides the effect of market downswings and opposition by the local people.

He said, although progress of each and every steel project is not monitored by the Ministry of Steel, some of the major steel projects where no noticeable progress has been made from date of signing of MoUs are as follows:

Company State Capacity Year of signing of MoU Status
Tata Steel Limited Odisha 6 mtpa 2004 Preliminary work on land acquisition, rehabilitation and resettlement is on.  Company has sought grant for mining lease from the State Government. Order for equipment and services has been placed and some consignments have already arrived.
  Chhattisgarh 5 mtpa 2005 Land has been acquired by State Government, approval received for drawing water from Sabri river, Ministry of Railways has granted in-principle approval for railway corridor, public hearing for the Environment Clearance successfully conducted. Prospecting License for iron ore granted in Bailadila-I deposits.
JSW Steel Limited West Bengal 10 mtpa 2007 Financial closure is under planning
  Jharkhand 10 mtpa 2005 Approvals for setting up the project are being pursued.
Posco India Limited Odisha 8 mtpa 2005 Land Acquisition facing local protest; MoU expired, revived with capacity scaled down at 8 mtpa from 12 mtpa
Arcelor Mittal India Limited Jharkhand 12 mtpa 2005 Land acquisition under-way
  Odisha 12 mtpa 2006 Land availability still a major issue.

(Source: Joint Plant Committee)