Worried over the delay in implementation of mega steel projects, the Orissa government has decided to monitor their progress. The state is expected to convene a meeting of representatives of 11 mega steel projects sometime in September to review their status. Chief minister Naveen Patnaik is likely to chair the review meeting.
Barely days ago on August 18, the state government had rubbished claims made by Union mines minister B K Handique that Posco-India was thinking of relocating from Orissa. Posco too denied the move.
As a prelude to the September meeting, the state government has asked the steel companies to prepare a report card of their respective steel projects. The district collectors and officials in the steel & mines department have also been directed to prepare the papers for the reveiw meeting.
The Orissa government had signed MoUs with steel companies for setting up mega steel project of 3 million tonnes per annum (MTPA) and above capacity in the state. Among the 11 big ticket projects are those of Posco-India of South Korean steel company Posco, Arcelor-Mittal of LN Mittal group, Tata Steel, Jindal Steel & Power, Sterlite Iron & Steel Ltd of Vedanta Group & Power Ltd, Navayuga Group, Bhusans, Essar Steel Ltd. In all, 49 MoUs were signed in the steel sector. The 11 mega steel projects are building up a capacity of 64 million tonnes per annum (MTPA) with a total investment of Rs 1.73 lakh crore.
Sources in the government said the government may cancel MoUs of companies which have failed to meet the milestones laid down in the agreements.
Some companies like Arcelor-Mittal, Navayug and Sterlite have developed cold feet on the projects due to the global recession.
Others like Tata Steel and Posco-India have run into land hurdles.
Many of the companies planning to set up projects in the state are pressing for government support in land acquisitions. Most privately admit that unless the state government prepares the ground, going ahead with projects in the state will be very difficult.