SAIL may exit Rs35,000-cr Sindri revival project
23 Jun 2014
The Steel Authority of India (SAIL), which is in the line of divestment and is about to shed some more of government's stake, is likely to exit the Rs35,000-crore revival project for the Sindri fertiliser plant in Jharkhand.
SAIL, which came out with a plan to set up a new 1.15 million tonnes per annum (MTPA) fertiliser plant, a 5.6 MTPA capacity steel mill and a 1,000 MW power plant with total investments of Rs35,000 crore, has now pointed out that the inordinate delays in land acquisition has become an obstacle to its investment plans.
"Due to land encroachment issues, SAIL may surrender the project. Funding is also an issue for the PSU which has other commitments to fulfill. SAIL's exit may delay the revival of the project," reports quoting a senior government official said.
"We have conveyed to the fertiliser ministry that the project has not moved much in the last four years and if the same situation continues, the company board may take a call on surrendering the project. No final decision has been taken yet. We are keeping our fingers crossed,'' a senior SAIL official pointed out.
Much of the Sindri fertiliser plant's 6,652.6 acres of land has been either leased / transferred after the unit stopped production in 2002 while other parts of the land are illegally occupied or fall on the river bed and getting these lands cleared is a herculean task.
While factory and staff quarters are spread over 1,200 acres each, there are illegal occupants in about 3,000 staff quarters out of the 6,542 quarters in the plant premises.
Nearly 450 acres have permanently been given to BIT Sindri and over 200 acres have been leased to ACC cement factory, while over 450 acres have been leased to the state government.
Additionally, nearly 470 acres are part of Gowai dam, over 550 acres of land lies on the Damodar river bed and nearly 700 acres land has been leased to central PSUs.
There are 26 villages on the factory land as well and displacing them is a big task, sources said.
SAIL needs about 2,500 acres for the steel plant, about 1,000 acres for the fertiliser plant and 500 acres for the power plant.
SAIL has planned to develop the three projects through special purpose vehicle, SAIL Sindri Projects, and the Cabinet Committee on Economic Affairs (CCEA) had already cleared the proposal.
It had also identified National Fertilizers Ltd as partner for the fertiliser plant and was in the process of identifying partners for the steel and power ventures.
