In the early nineties, Tata Steel, under the leadership of Russi Modi, had announced a Rs 100 crore (Rs 1 billion) project for prawn farming at Chilka lake. However, the project was later abandoned following resistance by the environmentalists.
Similarly, Tata Sons had teamed up with Indal and Norsk Hydro, also in the early nineties, to set up a one million tonne Rs 4,000 crore (Rs 400 billion) alumina refinery at Kashipur in Rayagada district under the banner of Utkal Alumina International Ltd.
However the project could not take off due to stiff resistance from locals to the land acquisition process. Finally in late 90s Tata Sons and Norsk Hydro withdrew from the project and the venture, which is now fully owned by Hindalco, subsequent to their takeover of Indal, is yet to make any progress due to local resistance.
Meanwhile, undeterred by these bad experiences, Tatas are currently pursuing a couple of mega projects in the state and ironically, all of them are entangled in land acquisition issues raising question marks about their future.
A few other projects that have not been abandoned but are facing trouble include Tata Steel's proposed 6 million tonne steel plant at Kalinga Nagar at an estimated cost of Rs 15,400 crore (Rs 154 billion) and entered into a MoU with the state government for the project in November, 2004.
The company was allotted 3,000 acres of land in Kalinga Nagar Industrial Complex for the purpose. But with about 1,200 families continuing to stay on in the land even after selling their property to the government in mid 90s, the company is facing a tough task to shift these families and clear the patch.
In fact, an attempt by the company to build boundary wall around the site had led to violent clash between the local tribal agitators and security forces and 14 tribals were killed in police firing on January 2, 2006.
The incident, one of the worst in industrial history of India, had not only affected the construction of the Tata Steel project at Kalinga Nagar, but also pegged back the entire industrialisation process in the state.
Meanwhile, the project work which was due to start in 2006 has been delayed by nearly two years. The company, sources said, has been able to shift only 700 families out of 1200 families staying in the site and awaits the rest families to shift before going ahead with the work.
Image: Greenpeace volunteers protesting against Tata in Mumbai. They are demanding that Tatas shift the company's upcoming port project from Dhamra in Orissa to save the endangered Olive Ridley sea turtles. | Photograph: Sajjad Hussain/AFP/Getty Images
Also read: New luxury train to cost Rs 25 lakh per trip!
Advertisement
