The Jharkhand government has issued a show cause notice to Tata Steel seeking explanation in regard with the memorandum of understanding (MoU) it had signed with the government to set up a greenfield project in neighbouring Seraikela-Kharswan district in 2005.
A P Singh, Secretary (Industry), Government of Jharkhand, told newsmen that Tata Steel had signed two MOUs with the state government - one for the Seraikela-Kharswan project and the other was for the expansion of the brownfield project situated at Jamshedpur.
The company had already invested between Rs 22-25,000 crores for Jamshedpur plant and expansion work was near completion.
Singh complained that the company has been spending its energy behind the ongoing modernisation program at the Jamshedpur plant.
The state government has also allotted them a mine, he said admitting that land acquisition remained an issue for the greenfield project.
Asked about the progress of steel giant Arcelor Mittal's project in the state, Singh said the state government has sanctioned them water and iron-ore mine and the company has applied for land in Bokaro district.
"We have recommended the district administration for consent award to the company and the matter was currently with the Revenue department to take a decision in this regard," he said.
Elaborating further about the consent award, he said the government would help the company to acquire the required land as per the negotiated rate it had with the landowners.
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