The MoU was signed with the State government in 2004
The State government has formally started withdrawal of land acquisition process taken up for setting up a steel plant by Sterlite Iron and Steel Company (SISC) in Keonjhar district.
Office of Revenue Divisional Commission (Northern Division) submitted withdrawal of land acquisition notification for land measuring nearly 1,800 acres from eight villages in Keonjhar.
SISC, a sister concern of Sterlite group, had signed memorandum of understanding with the State government in 2004, but the project never took off. It was always mired in controversy.
A majority of people in Palaspanga area in Keonjhar district were opposed to the project.
Villages where land acquisition process were withdrawn included Darnardanpur (242.32 acres), Gopinathpur (120.58 acres), Narsinghpur (54.24 acres), Singraisuan (123.67 acres), Tikarpada (612.64 acres), Mahadeijoda (270.37 acres), Kadagarh (380.08 acres) and Silisuan (67.07 acre).
In 2010 Vedanta Chairman Anil Agarwal had said the company was negotiating with L&T for setting up of a steel plant. Vedanta Group was supposed to invest Rs. 12,502 crore.
Sources in Steel and Mines department said since the land patches were irrigated land, the project was shelved at that place for the time being. Government is hopeful that the project would come up somewhere else.
This is the second industry of Vedanta Group after Vedanta Alumina Refinery at Lanjigarh of Odisha that had attracted trouble.
On its part the State government had already issued under section 6 (1) notification Land Acquisition Act.
- This is the second group of Vedanta which is in trouble
- Government is hopeful that the project will come up somewhere else
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