Jharkhand, Tata Steel cross swords over Jamshedpur

By IANS

Ranchi : The government of Jharkhand and Tata Steel are crossing swords over the issue of ‘millennium city’ status to Jamshedpur – the steel city Tatas gave to the state.


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While state Chief Minister Madhu Koda wants the city to be given the millennium city status, the Tata Steel demands industrial town status for the city.

The chief minister thinks that the city will get funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) once it is accorded the millennium city status. Two cities Ranchi and Dhanbad have already been included in the JNNURM project and the central government will provide Rs.80 billion for their development.

However, the Tata Steel has other plans for the city. “We have demanded that Jamshedpur should be given ‘industrial town’ status,” said Sanjay Chaudhary, corporate communication chief of the Tata Steel.

A vast area of the city has been leased to the Tata Steel and is managed by the group’s subsidiary Jugsalai Utility Service Company (JUSCO).

The area managed by JUSCO has better water supply, electricity supply and other basic amenities, while the area not under JUSCO jurisdiction lacks in basic facilities. If the city gets included in the JNNMUR, the state government will be responsible for development of both leased and non-leased areas.

“The state government will try to interfere in the working of JUSCO in the name of development. The condition of the city will worsen – like other cities of the state, which lack basic amenities like power, roads, water and other things,” a source in the Tata Steel told IANS.

If the ‘industrial town’ status is accorded to Jamshedpur, it will further empower Tata in the leased area as under that status a city gets central fund directly for improving infrastructure and logistic facilities, the source added.

State government officials, however, differ with the Tata Steel and blame the company for having vested interests.

“Tata Steel is looking into the interest of only the leased area. There are places outside the leased area that are in bad condition,” a senior government official said.

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