India’s plan to become a manufacturing hub is beset by a host of problems. The Budget is expected to provide little succour.
Last year, Tata Steel started the first phase of its steel plant in Kalinganagar, Odisha. Spread over 3,741 acres, at full capacity, it will be India’s largest single-location greenfield steel plant. But what is more telling is that it is just one of the few greenfield steel plants to be built in India in the last 20 years. It sure did take some time coming.
Planned at a cost of `15,000 crore, it was to start in 2010, but got bogged down by an agitation by locals who claimed they owned a part of the land given to the company. After January 2, 2005, when 13 agitators were killed in police firing, the work stopped.
This took the company by surprise. Tata Steel had, after all, built Jamshedpur, then one of India’s most modern cities, around its steel plant. Surely, the plant would help Kalinganagar, it thought. However, the sense of injustice among the locals, who were offered just `37,000 an acre by the government in 1993, overrode everything.
“Till January 1, 2005, we thought the land was ours, as we had paid for it,” says Rajiv Kumar, Vice President, Operations, Kalinganagar project, in Tata Review, the Tata Group’s in-house magazine. “We did not foresee any problem. We had the Tata name, we had been in Odisha for 100 years, and we believed we had built social equity with the community. But some stakeholders did not see it that way, there were others who were fiercely opposed to us, there was local politics. We were just not aware of the factors at play,” he says.
The Tatas were being fed this bitter medicine at another place too. Around the same time, Tata Motors’ Nano project in West Bengal was facing a similar problem. Unlike Kalinganagar, though, it was resurrected at Sanand in Gujarat. Critics said Kalinganagar would meet the same fate.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS