After Posco failure, Odisha to calibrate JSW Steel’s land need

The Sajjan Jindal-led JSW Steel might have to settle for a smaller land parcel for its 10 million tonne steel plant proposed in Odisha. The company has asked for 4,500 acres near Paradip in phases for the shore-based steel plant. The state government, however, has decided to review this land requirement because modern steel mills are usually more compact. Besides this, acquisition of large patches of land in the state has been a sore point historically with land losers and investors locking horns. Having burnt its fingers over projects by Posco and ArcelorMittal that were mothballed due to protracted protests over land, the state government is acting with caution. ArcelorMittal aborted its 12 million steel plant in Odisha in 2013 over land acquisition and law and order problems at the chosen site. More recently, Posco wrote to the state government to surrender land acquired for its project of equal capacity. “New steel plants can manage with less land because they make use of more efficient technologies. The same can be the case for JSW Steel. Though they have asked for 4,500 acres, we feel the projected land requirement can be rationalised. But the state government on its own cannot do it due to lack of expertise. So we are thinking of hiring an agency like Mecon,” said an official in the Odisha government. Last week, JSW Group Chairman Sajjan Jindal called on Odisha’s chief secretary and other key officials. Folowing the meeting, the state government has asked JSW Steel to submit the detailed layout of land and plans on how it intends to develop it. The High Level Clearance Authority (HLCA), the highest body approving investments in Odisha, has already given its nod for the JSW Steel project. The company has pledged an investment of ~50,000 crore in the steel project and associated facilities. The steel plant is expected to go on stream in four years and when fully operational it will create jobs for around 50,000 people. To optimise raw material costs, JSW Steel has committed an investment of ~3,700 crore on a slurry pipeline for transporting 30 million tonnes of iron ore each year from Joda to Paradip. This project, too, has received the HLCA’s approval. JSW Steel has pitched for a 50-year agreement with stateowned Odisha Mining Corporation (OMC) to supply 30 million tonnes per annum of iron ore fines at the IBM (Indian Bureau of Mines) declared price. JSW Steel has suggested that OMC engage a mine developer cum operator (MDO) on a long-term basis to develop its large mines like Gandhamardhan and Dubuna. Though the state government officially maintains that the site for JSW’s Steel’s project is not finalised, the company has asked for the land where the Posco project was supposed to come up. JSW Steel has asked for 2,700 acres of land that has already been acquired for the Posco project. The company wants this patch of land be transferred by the state government after constructing a boundary wall. The company has also asked for around 150 acres of land for a township and 90 acres for a rehabilitation and resettlement colony. JSW Steel has urged the state government to transfer all the land parcels at the rate of ~400,000 per acre.

The company has also asked for around 150 acres of land for a township and 90 acres for a rehabilitation and resettlement colony. It has urged the state govt to transfer all the land parcels at the rate of ~400,000 per acre