Land stir hurts investments in Tata Steel's Gopalpur industrial park

Sporadic protests by land losers and project-affected people are impeding the flow of investments to Tata Steel's industrial park at Gopalpur. The locals agitating over jobs and compensation issues, have blocked the main gate of the park since November 2016 and are intermittently disrupting the operations of Tata Steel's ferrochrome plant at the site.

As an anchor investor, Tata Steel has developed a ferrochrome manufacturing unit spread over 155 acres of land. The plant has a capacity to produce 55,000 tonne per annum. The entire park covers a stretch of 2,970 acres, of which 1,235 acres is notified as a Special Economic Zone (SEZ). The non-SEZ patch is proposed to be developed as a Domestic Tariff Area (DTA) by Tata Steel. Accordingly, the steel maker has sought 1,735 acres of land to be registered in the name of Tata Steel Special Economic Zone (TSSEZ).

Tata Steel has proposed to develop the SEZ and DTA concomitantly to speed up investments in the industrial park. The move to develop the DTA stems from the reducing appeal of SEZs in the backdrop of a waning demand for export-oriented units and doubts over extension of SEZ-related benefits beyond 2020.


The steel company has been striving to woo investors for the park by staging roadshows within the country and overseas. Tata Steel has received Expression of Interest for 190 acres of SEZ and 235 acres for the non-SEZ area. But, potential investors are apprehensive to sign firm agreements due to the prevailing agitation.

Arun Misra, managing director, TSSEZ and vice president, Project Gopalpur said, “There have been some prospective investors who have visited the site and have shown interest. But disturbances and disruptions at the site could have a bearing on their investment decisions.”

For the SEZ-notified area, Tata Steel has signed a memorandum of understanding (MoU) with BS Minerals for a two-acre manufacturing unit. In the non-SEZ patch, other than Tata Steel's ferrochrome plant, Sure Safety Solutions has set up a fiver-acre-unit for aerial manufacturing targets.

“Process for obtaining environmental clearance for the SEZ area is currently underway. We have already signed an MoU with one investor for the area which will be converted to a sub-lease agreement after environmental clearance. We expect more investment for the SEZ area once the environmental clearance is obtained”, said Mishra.

Land at Gopalpur that is now being developed as an industrial park, was originally acquired for a shore-based steel plant proposed by the Tata Steel during 1995-96. However, the steel maker shelved its plan and the state government suggested to develop a multi-product SEZ on the acquired land. Considering the changed plan, part of the land was registered under TSSEZ in October 2015, following which a revised compensation package was offered.

Misra said, more than 2,000 families have already been paid the additional compensation and the balance is under process. Apart from this, 78 people from core displaced families have been offered regular jobs in the ferrochrome plant. Sure Safety Solutions has also shortlisted 10 candidates from the displaced communities, out of which four people have been offered engagement.

BS