Date:11/05/2006 URL: http://www.thehindubusinessline.com/2006/05/11/stories/2006051102770200.htm

Back Tata Steel Orissa unit ready to kick off

Our Bureau

MD promises to take care of resettlement and rehabilitation

MR B. MUTHURAMAN, MD, Tata Steel, addressing a press conference in Mumbai on Wednesday. — Paul Noronha

Mumbai , May 10

Tata Steel, which has embarked on three green field projects, has completed the land acquisition process for its six-million-tonne Orissa steel plant.

"We are ready to place orders for the equipment for the plant," said Mr B. Muthuraman, Managing Director, Tata Steel. The company has acquired 3,000 acres for the purpose.

The company was on the backfoot following a clash between the villagers of the area where the plant is slated to come up and the police, which resulted in the death of 13 people.

"That incident was a result of some misunderstanding. Tata Steel is in a good position to take care of the people's resettlement and rehabilitation properly. Anyone who gets displaced should get a better job than earlier, that is our intention," Mr Muthuraman said.

In the three projects at Orissa, Chattisgarh, and Jharkhand, about 2,200 families would get displaced in the land acquisition process.

"We will not only rehabilitate and resettle them but offer training to some members of each family."

The Orissa Government has further enhanced the compensation in its rehabilitation policy.

"We plan to take care of each and every family that gets displaced in the process of setting up these green field projects," Mr Muthuraman said. "Each of the family's income will be monitored and we will ensure that it goes up."

The company would issue a Tata Steel card to each of these families.

In Chattisgarh, Tata Steel has earmarked the specific land but the acquisition process is yet to commence. In Jharkhand, the company has earmarked the overall land.

The company requires 3,000 acres in Chattisgarh, where it plans to set up a five-million-tonne plant.

At Jharkhand, the company requires 5,000 acres for a planned 12-million-tonne plant.

The total cost of the green field expansion works out to Rs 40,000 crore.

The company has applied for mining leases and is also in discussions with the Railways for infrastructure preparedness for these upcoming projects.

The Rs 4,500-crore Jamshedpur expansion of 1.8 million tonnes is on course and should be operational by middle of August 2008.