Why no work yet? Jharkhand questions stalling investors | business | Hindustan Times
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Why no work yet? Jharkhand questions stalling investors

business Updated: Apr 19, 2010 21:54 IST
Debashish Sarkar
Debashish Sarkar
Hindustan Times
Highlight Story

The Jharkhand Government has served notices on 22 prospective industrial investors asking them why the MoUs should not be cancelled.

The notice is part of the state government’s review of all memorandums of understanding (MoUs) signed with mega-investors.

The state’s industry department has marked these investors as ‘non-serious investors’, while identifying about 30 ‘serious’ investors whom the state has decided to actively assist in land acquisition, sourcing water and providing mines.

“We’ve served notice to 22 investors who are found wanting in following up their MoUs,” State Industry Director Aradhana Patnaik confirmed. “They have hardly done anything on ground such as procuring land, acquiring mines, undertaking corporate social responsibility schemes since they got the MoUs.”

The 30 ‘bright prospects’ have been put on priority list.

The move is significant as Jharkhand Chief Minister Sibu Soren had announced after assuming power on December 30 that he would review all MoUs and back only those investors who would set up plants and make value addition to the mineral resources procured from the state, apart from generating employment.

The state had signed about 70 MoUs worth over Rs 2 lakh crore since 2005, with global giants like Tata Steel, Arcelor-Mittal, Jindal South West (JSW), Jindal Steel and Power (JSPL), Bhushan Power and Steel (BPSL) etc but little has materialised on ground.

The industry department has also reportedly sought details of industries’ water consumption pattern.

“There are instances where a certain investor has been allotted 50 cusec but is only using 10 cusec,” a senior official said. “Even serious players may be asked to shift or alter their plans. The pressure for water in Damodar and Subernarekha basins are too much, but it is much less on South Koel basin. New industries would be better be advised to sources water from there.”

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