Date:26/12/2007 URL: http://www.thehindu.com/2007/12/26/stories/2007122660811500.htm

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Curb agitation on land issue, says Pranab

Special Correspondent

‘Land is a crucial input for industrial development’

— PHOTO: SUSHANTA PATRONOBISH

FIRM FOOTING: Union Minister of Steel Ram Vilas Paswan with SAIL Chairman S.K. Roongta (centre) and External Affairs Minister Pranab Mukherjee at Kulti on Tuesday.

Kulti (West Bengal): Union External Affairs Minister Pranab Mukherjee on Tuesday called for setting limits to launching agitation-based opposition to acquisition of land for industry, saying that land was after all a crucial input.

Speaking at the inaugural ceremony for commencement of activities for operation of the Kulti Works of the Steel Authority of India Ltd (SAIL), he said, “Land is necessary for industrialisation and for progress. It is necessary to adopt a more tolerant attitude and decide where agitation should be launched and where it should not be launched. There was need to draw a line and set limits,” he said.

NH-34, on which he had had an accident recently, needed expansion but the project was facing difficulty due to opposition over land acquisition, he added.

Mr. Mukherjee said that 40 per cent of the “SAIL92s” corporate investment plan of Rs. 53,000 crore had been earmarked for West Bengal and most of it had gone towards reviving sick units. For the eastern region, the investment stood at Rs. 40,000 crore.

The 135-year-old Kulti unit of erstwhile IISCO, was Asia’s first ironworks. Its fortunes fluctuated with that of IISCO and the unit, whose spun pipes enjoyed global demand had to be closed down in 2003 when all but 31 employees took VRS.

The Rs.9,600-crore modernisation project of IISCO launched by the Prime Minister on this date in 2006, raised hopes for revival of this BIFR -referred unit too. IISCO has now become a unit of SAIL and Kulti will now be known as Kulti Growth Works.

Union Steel Minister Ram Vilas Paswan said that the re-birth of the Kulti works was now taking place and the first phase of operation would start in mid-2008. He said that the SAIL will invest Rs.13,500 crore in total in IISCO.

He said that from 30 million tonnes, the Indian steel sector’s production had increased to 50 million tonnes. However, per capita consumption of steel in India was still low at 45 kg and efforts were on to expand the market by enhancing steel use in the rural areas.

Mr. Paswan said that SAIL was also keen to take over another closed unit in West Bengal — the State-owned National Iron and Steel Company — and the West Bengal government has been approached for this.

“If they cooperate then we can re-start the unit,” the Minister said.

However, there was a total no-show by the West Bengal government at the function as neither any minister nor any official was present on the occasion.

Steel Secretary R.S. Pandey said that India aspired to become the second largest producer of steel and for this it needed equipment and infrastructure. The re-opening of Kulti would fulfil that need.

With the closure of Kulti, a number of items, which were earlier supplied from here to SAIL plants, were being procured from outside agencies. Over the years with growing requirement of ferrous and non-ferrous castings the plants have been facing difficulties with regard to both quality and prices. As per a SAIL board proposal, the facilities to be started initially are non-ferrous and steel foundry, machine shop and other supporting facilities.

The total land area of Kulti plant is 812 acres which includes 218 acres of works area and a township. “SAIL92s Centre for Engineering and Technology” has worked out the detailed plan for start-up and the investments required for this.