Major investment proposals, mainly in the mineral based steel and aluminium industry sector, are not progressing with usual pace and speed in Orissa due to persistent protests by the local people.
The 6-million-tonne Tata Steel project at Kalinga Nagar and 12-million-tonne Posco steel plant project at Paradip are running much behind their schedule. While Tata Steel initially faced the protest, Posco’s woes continue till date as the local people oppose it on the ground of displacement and compensation. Similarly, the expansion proposal of Lanjigarh refinery project of Vedanta Aluminium Limited has also hit a roadblock because of concerns raised by environmentalists and alleged violation forest and green laws by the company. Both Tata Steel and Posco-India had expected to commission Phase-I of their projects in 2011. While Tata Steel has rescheduled it to 2014, Posco is still uncertain. Besides mega investment proposals, the situation in Kalinga Nagar Industrial Complex is not well. Many of the small steel units coming up at that place are crying since long for a “level-playing” field. While a few of them have got captive iron ore mines, the others are buying the ore from Orissa Mining Corporation at what call “hefty” prices, making them incapable to compete with major players. The state administration, however, seems to have “failed” to properly handle the local discontentment with political resoluteness and provide an unbiased level-playing field to all investors.