BHUBANESWAR: Tecton Ispat (P) Limited (TIPL) has blamed the State Government for delay in implementation of the proposed integrated steel project and captive power plant. Responding to the showcause notice of the Government for termination of the memorandum of understanding (MoU), the company said delay in acquisition of private land and transfer of government land in its favour are the primary reasons for the timely execution of the project. TIPL’s request to IDCO for transfer of government land in its favour has not been acceded to in spite of several requests. Besides, the company’s proposal for diversion of forest land as per the provisions of the Forest Conservation Act, 1980, is yet to be processed,” said Additional Director of TIPL Ajay Kumar Singh in reply to the Steel and Mines Department. The project cannot make any progress unless TIPL is handed over the land as per the MoU, he said. Claiming that the company has already invested ` 1.30 crore towards project implementation, Singh said, “Termination of contract at this stage will cause irreparable damage and loss to TIPL. Besides, the company should not be blamed for any delay or lapse.” The company signed the MoU with the State Government on January 29, 2008 for setting up an integrated steel plant of 0.25 million tonne per annum capacity and a captive power plant (CPP) of 24 MW at Tarakabeda in Dhenkanal district with an investment of ` 227.13 crore. As per the agreement, TIPL required about 150 acres of land for the steel project and the CPP. Before signing MoU, the company had deposited ` 30 lakh with IDCO towards processing charges for acquisition of land to establish the steel project. As the required land was not available at Tarakabeda, the site was changed to Karanda under Hindol tehsil on August 5, 2009. The company deposited the required amount with IDCO for acquisition of 55.97 acre of private land and 72 acres of Government land. It was subsequently found out that 24.51 acres of the proposed government came under gochar category. The Government has not taken any initiative to find out suitable land in lieu of the gochar land, the company said. After a review by Steel and Mines Minister Raghunath Mohanty on the progress achieved by the MoU-signed companies in April last year, the Steel and Mines Department issued showcause notices to TIPL and Pradhan Steel and Power Limited (PSPL) for not progressing beyond the drawing board stage. PSPL proposed to set up a 0.5 mn tonne capacity plant in Athagarh with an investment of ` 606 crore.
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