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Monnet Ispat and Energy to scrap Jharkhand steel plant’s plan

22 Jul 2013 Evaluate

Monnet Ispat and Energy is likely to scrap its plan of 1.5 million tonnes plant in Jharkhand, following the Posco and ArcelorMittal’s move of pulling out of $18 billion projects. It is withdrawing this plan for want of raw material, water and land - the same reasons cited by both ArcelorMittal and Posco as well.

The company had signed a MoU with Jharkhand government in 2003 to set up a DRI-based 1.5 mtpa steel plant at Hazaribagh with Rs 1,400 crore investment on 500 acres of land. It has also faced problems with land acquisition issues. Following signing of the MoU, the Jharkhand government had created a nodal agency (Jharkhand Infrastructure Development Corporation) JIDCO to acquire the land for the project. However, after three years, JIDCO was dissolved and Monnet was advised to go for purchase of land directly

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