Deal #604

The Chhattisgarh government signed a memorandum of understanding (MoU) with Tata Steel in 2005 for the greenfield project with a capacity to produce 5.5 million tonnes steel a year, on an investment of Rs.19,500 crore. The project envisages the acquisition of over 2,000 hectares of land. The area required for the steel plant is some 960 ha; the rest of the land will be used for residential quarters, ancillary units, roads, schools, hospitals, and a 625 MW captive power plant. About 585 ha earmarked for the project is held by individuals (called account holders, or khatadharaks in Hindi). The rest is controlled by the government and can be allotted directly to the Tatas on lease. https://frontline.thehindu.com/other/article30165361.ece

Steel plant

Land is purchased by the government and then leased to the company

2005: MoU between the company and the regional government was signed 2008: Land covering as many as 10 villages in Bastar had been acquired in February and December, 2008 for the steel plant. 2016: Tata Steel withdrew from the project because of failed negotiations with affected communities

In 2016, even as the government hadn’t yet “taken possession of the land”, Tata Steel announced that it was pulling out of the project. In January 2019, Chhattisgarh chief minister Bhupesh Baghel had instructed his officials to complete the formalities of returning the land to tribals in Bastar.