Orissa may have signed as many as 60 memoranda of understanding (MoUs) lining up investments of Rs 4,00,000 crore, but the conditions for implementing these projects are apparently still not in place.
The state government itself is at a loss with regard to the implementation of these projects, giving rise to chaos. ??There are several issues, like land acquisition, granting of mining lease, rehabilitation and resettlement (R&R) policy which need to be sorted out??, said state steel and mines secretary, UP Singh.
??The state government is acquiring land for private industries invoking the emergency clause of the Orissa Land Acquisition Act. The propriety of government action of acquiring land has been questioned as such provisions can be used only for public purposes. Similarly, the Mines and Minerals (Regulation) Development Act provides for hearing each applicant before rejecting their claims for the mines on first-come first-serve basis under Section 11(5) of the Act. This is delaying the process of leasing out mines to companies willing to value addition in the state. Moreover, the amendment to the MMRD Act in 1999 has made prospecting of mines mandatory for granting of lease.??
At a seminar organised by the Metal Bulletin here recently, the captians of industry echoed their frustration over the delay in project implementation. In fact, such was their frustration that the chief of Posco Research Institute, Delhi, Chang-ho Kwag, even praised the Left Front government of West Bengal in this regard. ??West Bengal is pursuing industrialisation decisively and resolutely despite being a Left-ruled state??, he said, adding that states in the eastern region should take West Bengal as a role model.
Kwag?s frustration stems from the fact that Posco?s $12 billion steel project in Orissa is not making any headway even though a MoU was signed two years ago. The company is not able to acquire land due to local resistance, and is also not getting a mining lease because of bureaucratic and legal hurdles.
Varun Jha, vice president of Tata Steel, Sanak Mishra, CEO of ArcelorMittal India Ltd, BK Panda, director, projects, Essar Steel Orissa Ltd pointed out the hurdles that were leading to project delays. ??The government must ensure mines, land and water so that investors go on implementing their projects without hassles??, said Essar?s Panda, adding that the government must have a clear-cut policy about leasing of captive mines.
Tata Steel?s Jha said greenfield projects were costly affairs and things get more complicated when the investor is left to deal with land acquisition, forest diversification, mines leasing process and other activities. He suggested that the land acquisition process be solved at the political level. ArcelorMittal?s Mishra said government support was required for getting iron ore and coal mining leases and forest & environment clearances.