State Government are not supporting and helping companies such as Arcelor Mittal and POSCO with their projects
Monet Ispat has confirmed the news that they are withdrawing their planned project of 1.5 MnT capacity steel plant from Jharkhand. Mr. Amitabh Mudgal, Senior Vice President, Monet Ispat and Energy, said in a statement about the project withdrawal. They are withdrawing the project because there is no provision for water, land and raw material in the state. According to the sources the same reasons were given by Arcelor Mittal and POSCO who pulled out their US$ 18 billion worth future projects from Odisha and Karnataka respectively.
Monnet Ispat is presently setting up its 1.5 MnTPA capacity steel plant in Chhattisgarh. It had signed an MoU with Jharkhand in 2003 for setting up a (Direct Reduced Iron) DRI-based plant at Hazaribagh. The company had invested a total amount of Rs 1,400 crore for 500 acres of land.
An agency, Jharkhand Infrastructure Development Corporation (JIDCO), was created henceforth by the Jharkhand government for acquiring land for project which dissolved as soon as the money was deposited by Monnet Ispat. The company was then asked to go for direct purchase of land. “We started to work on land acquisition in Hazaribagh and were later told that water is not available at this site. So, we changed the project site to Chas Block in Bokaro district with assurance from the state that required water will be made available from the Damodar River. It seems Jharkhand does not require industry. We briefed all this to Inter Ministerial Group meeting in the Ministry of Steel that in the absence of water and iron ore, it is not possible for to move ahead.” Mudgal said.
Monnet still hopes to gain support from Jharkhand Government even after such a treatment from them. They say if there is an assurance for supply of water and raw material, they will continue with their project in Jharkhand.