Raipur: After months of protests, 86 tribal families of Dantewada district of Chhattisgarh agreed to give up 600 hectares land to Essar Steel for its upcoming 3.2-million-tonne-per-annum (mta) plant, a company official said on Wednesday.
Steel major Essar Steel had signed a memorandum of understanding with the government of mineral-rich Chhattisgarh in June 2005 to bring in Rs 70 billion investment in Naxal-hit Dantewada to install the plant in two phases.
The company sought 600 hectares land in two tribal villages - Dhuli and Bhansi - but the 86 families belonging to these villages protested against the company early this year. They even refused to accept the rehabilitation package offered by the company for which the Bharatiya Janata Party (BJP) mediated and tried hard to persuade villagers to vacate the land.
"Eighty-six protesting families have held a meeting last week and agreed to hand over 600 hectares of land to Essar Steel. We will pay them Rs.150,000 per acre plus compensation for trees on the surrendered land," said resident director of Essar Steel H S Sethi.
Essar will rehabilitate 86 affected families at suitable sites and offer employment at the upcoming plant under the Chhattisgarh government's industrial policy.
"The ground construction for the plant will begin within three-four months and it will take another three years to make the first phase operational. The total commissioning including second and final phase will be completed within five years," Sethi said.
"The state government is backing up Essar Steel for early beginning of construction work as it will speed up industrialisation in Dantewada, one of the most illiterate and poverty-hit districts of India," said state Industry Minister Rajesh Munat.
The hilly and forested terrain of Dantewada is basically known as a Naxal stronghold where over 250 people have been killed since January, mostly in landmine attacks.
But the company seems to be unfazed by the Naxal presence and their recent stepped up attacks on industrial houses in the district. The Naxals launched a deadly attack in February on India's largest iron ore producer and exporter, National Mineral Development Corporation (NMDC).
The guerrillas raided a magazine house of the NMDC and shot dead eight CISF personnel and took away 20 tonnes of high-powered explosives.
"I do not expect any problem from Naxals; when it will come we will face," Sethi stated.
He added Essar has sought mining lease from the world's best quality iron deposits of Dantewada's Bailadila deposits Nos 3, 6, 8 and 9 for 50 years. The company needs 5.5 million tonnes iron ore per year.
The Essar plant will get water from the Sabri river, 60 km from proposed plant site.
Essar has filed an application with the state government for investing Rs 45 billion for setting up a 1,000-mw power plant in coal-rich northern region of the state to feed power to its upcoming plant.
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