Tata Metaliks shelves Rs 15,000-cr integrated steel plant in Karnataka
23 March 2017
Tata Metaliks has informed the Karnataka government that it cannot implement its Rs15,000 crore 3-mtpa integrated steel plant at Haveri and because of non-availability of mines and iron ore.
“The company has informed the State government that the project cannot be implemented and has requested for refund of the amount paid for allotment of land,” RV Deshpande, Minister for Large and Medium Industries, told the Karnataka Legislative Assembly.
The Minister replying to a question by MLA from Haveri, Basavaraj Nilappa Shivannavar, on the status of Tata Metaliks project said the Supreme Court’s decision to allot mines only through auction and priority be given to state-owned enterprises in allotment of mines.
This is the reason given by the Minister for non-allotment of iron ore mines to the company.
Based on these developments, “the company on October 10, 2016, informed the government that the project has become unviable because of non-availability of mines and iron ore,” explained Deshpande.
For Tata Metaliks, the Karnataka government had acquired 2,500 acres at various villages of Haveri taluk and the integrated steel plant was approved by the State High Level Clearance Committee (SHLCC).
Deshpande said after SHLCC clearance, the State government went about acquiring land through KIADB.
About 1,658 acres in Boodugatti and Agadi villages; and 608 acres in Devagiri and Devagiriyallapura villages totalling 2,266 acres were notified for acquisition.
Shivannavar requested the State government to take a suitable decision early and compensate the farmers who are waiting for nearly seven years.
“The decision to return the land will be taken after due examination by the government based on request of the company. We will again go to the SHLCC to take a suitable decision,” said Deshpande.