Govt threatens to cancel MoUs of five companies Pioneer News ServicePublished by MAC on 2006-04-12
Govt threatens to cancel MoUs of five companies Pioneer News Service
12th April 2006
The Orissa Government has threatened to cancel the Memorandum of Understanding (MoU) with five companies. Officials said that despite repeated requests, none of the companies have taken any steps for land acquisition and did not apply for the necessary clearance from the State Pollution Control Board. It may be mentioned here that all the five companies have signed the MoUs nine months back, but no progress was made in this regard yet.
The companies are AML Steel and Power Limited, Sunflag Special Steels Limited, Stats Steel India Limited, Sterlite Iron and Steel Co Limited and Maharashtra Seamless Limited. The companies signed the MoUs to produce 10.965 million tonne at an investment of 15,910 crore.
While AML Steel and Power Limited signed the MoU for setting up a plant at Kalinga Nagar at an investment of Rs 206.67 crore, and Sun Flag Special Steels India Limited at Bomlai, Sambalpur at an investment of Rs 915 crore, Stats Steels India Limited signed the MoU to set up a plant at Tangi with an investment of Rs 855 crore. Likewise Sterlite Iron and Steel Co Limited signed the MoU to set up a plant at Palaspanga, Keonjhar at an investment of Rs 12,500 crore and Maharsahtra Seamless Limited at Kalinga Nagar at an investment of Rs 450 crore.
Sources said that on the other hand, 21 companies are going to produce steel by the end of 2006. Eleven companies have already utilised 25 per cent of their project cost while 10 other companies made remarkable progress. These companies are Nepaz Steel, Arati Steel, Maheswari Steel, OCCL, Scaw, ASML, Metalic Auction Integrated Steel, Deepak Steel, Bhusan Steel and Bhusana Steel Limited Company, Visa, SIL, SPS, Ariyan, Patnaik Steel, Rathi Enterprises, Viraz Steel, Jindal Stainless and Estate Steel.