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Odisha's 'no raw material' pledge a deterrent: Jindal

Source : BUSINESS_STANDARD
Last Updated: Thu, Jan 24, 2013 19:45 hrs

The Odisha government’s decision not to give any fresh assurance on supply of raw materials to steel companies in the revised memoranda of understanding (MoUs) could deter mineral-based investors from setting up projects in the state, said Naveen Jindal, chairman of JSPL.

"In the future, if a mineral-based investor, who wants to set up his industry here (Odisha), is denied access to raw material, why would he be interested to set up the plant? It’s fine if the state government takes steps to protect the laws of the land, but investors should also be provided facilities,” Jindal said.

He pointed out the commitments made by the state government with MoU-signed players must be honoured. "I'm sure that a solution will be worked out and the state government will make its best efforts to support industries.”

Earlier this month, the state government decided against giving supply assurances in MoUs to be signed with certain steel makers whose earlier MoU validity period have already expired.

Coal block development
Meanwhile, JSPL said it hoped to start work on development of the Ramchandi coal block in Odisha, allocated to it for its Rs 60,000-crore coal-to-liquid project, within a year.




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