Investors keen to set up steel and other projects in Jharkhand are optimistic following a recent meeting with state industry minister on the draft rehabilitation & resettlement (R&R) policy.
At the meeting chaired by Jharkhand industry minister Sudhir Mahato, top officials from Essar Steel, Jindal Steel & Power Ltd, Tata Steel, Tata Motors, Arcelor Mittal, Bhushan Steel and several other big players had the opportunity to go through the draft for the first time and react on the provisions therein.
While most of the provisions are on the lines of the recent Central legislation on the subject, the state government is keen to keep the interest of landowners intact, Mahato said.
According to one of the provisions, landowners, over and above normal compensation, will receive Rs 1000 for each acre acquired for a project. Payments will be made annually for a period of 30 years, and the amount will not exceed Rs 10,000 per annum.
Thus, a landowner will receive a maximum of Rs 10,000 per annum from a company even after giving away more than 10 acres.
Mahato told FE that he had asked industry leaders attending the meet to submit their reactions and suggestions latest by March 24, so that the five-member empowered committee on the R&R policy headed by Stephen Marandi could sit and act on those recommendations on March 25.
Some of the industry leaders had raised the question as to how the state government was going to provide land for industry as the Chhottanagpur Tenancy Act (CNT) was in place.
According to Mahato, “In places where the Act is in vouge, the government will first acquire land from tribals and then distribute it among investors.”
Mahato said he would soon have a discussion with big investors before finalising the policy, following which it would be announced.
“Most of the terms of the policy have been accepted by industry leaders. A few small issues remain to be sorted out,” said Mahato, also the deputy chief minister. The government would announce the new industrial policy very soon, he added.
Jharkhand’s industrial policy, which had been announced in August 2001, expired on March 31, 2005. It was then extended twice-first for a year, and then till the announcement of the new policy.