J'khand allays industry's fears about Naxal threat

Jharkhand on Wednesday assured the industry of its preparedness to tackle any threat from extremists and dismissed reports that the ultras are targeting steel major ArcelorMittal's proposed Rs 50,000-crore (RS 500 billion) steel project in the state.

"We don't have any such information of Naxals trying to target ArcelorMittal's mining operations in the Karampada region or other activities. Neither the company nor our home department has any such information," Jharkhand chief secretary AK Singh told PTI.

Singh's response comes in the wake of media reports saying banned ultra outfits are ready with a blueprint to prevent Mittal's big-ticket investment in the state. "In the worst case if any such situation arises we are well equipped to handle it as we won't allow industrialisation to come to a halt in the state due to any threat, be it extremism," Singh said.

The mineral-rich state has entered into a large number of agreements for mega projects with investors and so far there has been no exodus of industrial houses, he added.

"ArcelorMittal has no comments on the issue," company spokesperson Mandakini Sud said when contacted on the issue.

Meda reports said extremists would not allow the world's largest steel maker to exploit the state's mineral wealth and wanted the government to debar it from mining iron ore in West Singhbhum's Karampada region, where the Centre recently approved licence to the company for prospecting iron ore over 662.95 hectares.

The Karampada deposits with over 200 million tonne of rich iron ore will partly meet the requirement of Mittal's proposed 12-million tonne per annum steel project.

The world's largest steelmaker had entered into a pact with Jharkhand way back in 2005 to set up a steel plant in Bokaro at an estimated cost of Rs 50,000 crore. But it has been facing inordinate delays in land acquisition and regulatory hurdles to launch the venture.

Faced with opposition from villagers from the Khunti, Gumla areas, where the plant was proposed earlier, the company is making efforts to acquire land at Petarwar in Bokaro district now. The entire project requires around 8,000 acres.

The London-based NRI billionaire LN Mittal, who heads the steel giant, had in February mounted a blistering attack on the governance system in the country that prevented big-ticket projects. However, late last month Mittal exuded confidence that his mega Rs 130,000 crore investment in the country would take off soon as some states are very "proactive".

Apart from Jharkhand, the company plans a Rs 50,000-crore project in Orissa and a Rs 30,000-crore (Rs 300 billion) plant in Karnataka.