Tata Steel, Orissa form SPV for Gopalpur SEZ
Business Standard — July 29, 2003
Kolkata: Tata Steel and the Orissa government will set up a special purpose vehicle (SPV) for the proposed Gopalpur special economic zone (SEZ).
B Muthuraman, managing director, said the SPV will be set up for promoting the SEZ. Tata Steel is, however, yet to decide upon the extent of its holding in the SPV. The modalities are expected to be finalised shortly.
The advantage of a SEZ is that the Gopalpur port can handle deep draft vessels. Moreover, the steel ministry had also approached the railway minister for setting up a railway transport corporation in Gopalpur.
The Orissa government is also looking at converting the fair-weather port into an all-weather one. The SEZ will effectively utilise the 4,000 acre acquired in Gopalpur by Tata Steel for its proposed 10 million tonne steel plant, planned in the 1990s. Work on the project was never initiated.
The first phase of the mammoth project was estimated at Rs 7,000 crore. The land was acquired by displacing one village completely and four others partially. Three factors prevented Tata Steel from going ahead with its plan — no progress on the port, poor linkage of iron ore and non-availability of water.
However, to meet existing demand Tata Steel decided to augment capacity by adding one million tonne at its Jamshedpur plant. Commenting on the steel business, Muthuraman said prices were expected to be stable in the coming months. Tata Steel posted a 315.93 per cent rise in its net profit to Rs 267.07 crore for the first quarter ended June 30, 2003.
Net sales for the quarter grew 27.8 per cent to Rs 2,257.10 crore compared with Rs 1,764.93 crore. Analysts tracking the company said the steel sector is on an upswing and the trend is likely to continue, at least as long as China remained a net importer of steel.
While Tata Steel had already become economic value-added positive, the company is gearing up to manage the inevitable volatility of the cyclical steel industry.
Banerjee, however, refused to withdraw her fast until the West Bengal government accepted her conditions, including a halt in the acquisition of Singur farmlands, about 40 km northwest of here.
Singh met Banerjee at the Esplanade in downtown Kolkata where the leader is on fast. The Trinamool chief's hunger strike entered its 12th day Friday.
"I urge you with folded arms to withdraw the fast. You need to live for the sake of the poor," Singh told Banerjee.
"I promise that this fight would be fought everywhere in India. This is a national issue and we are fighting it in many places. We all have to come together and fight for the farmers," he added.
"I have come here to find a way out through talks," Singh said as Banerjee apprised him of the Singur situation and how "women and children are tortured there" and "democratic rights of the people are being curbed".
She told him that the state government was "giving the land almost free to the Tatas along with electricity and water".
"It is a six crop land in many places. It is a model agricultural land. Some industrial units which have come up there have also been asked to leave in favor of the Tatas," Banerjee said.
Earlier, Singh had met Chief Minister Buddhadeb Bhattacharya over the same issue.
Meanwhile, Tata Motors Managing Director Ravi Kant said in an interview with Bengali news channel Kolkata TV that the company was "committed to the development" of Singur and "well-being of the people on whose land the factory will come up".
He made said the Tata Motors would not give up the project and roll out the car by mid 2008.
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Q: What's the difference between the Government and the Mafia?
A: One of them is organised.
Manoj Padhi
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