By IANS
Ranchi : The Jharkhand government has signed memorandums of understanding (MoUs) with 52 companies in the past four years – but most projects have failed to take off.
In the past three years, only seven companies started their first phase of operation.
The MoUs were signed mainly in the steel and power sectors. The total proposed investment was more than Rs.2 trillion. The major companies included Tata Steel, Arcelor Mittal, Essar Steel and Tata Power.
Of the 52 MoUs, one was signed in 2003, 13 in 2004, 30 in 2005 and rest in 2006. The MoUs were valid for two years by which time the companies had to start work.
The state government last week renewed MoUs of Tata Steel and Arcelor Mittal for another three years. But most other companies have not applied for renewal of MoUs.
“Only 13 companies have applied for renewal,” said a state industries department official.
Reacting to the issue, Deputy Chief Minister Sudhir Mahto, who is also in charge of the industries department, said: “We will renew the MoUs of those companies which have applied for it. The rehabilitation and resettlement policy will be cleared in the next cabinet meeting. It will provide an impetus to industrialisation.”
The industries department officials point out that the state government has recommended coal blocks for 13 companies to the central government.
The major stumbling blocks in setting up industries are land acquisition and iron-ore mines.
“The state government has failed to keep its promise of helping investors set up industries. It left investors to their fate in deciding the location of industries and negotiating with landowners. Other things like providing coal blocks and iron-ore mines are still pending with the government,” an official of a company that had signed a MoU with the state government in 2004 told IANS.
In one instance of delay, Arcelor Mittal wanted Chiria mines for iron ore for its greenfield steel plant but the state government is fighting a legal battle over it with Steel Authority of India Ltd.