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Paper Agreements, Waiting for Investment

The Jindal group is preparing to sign a third MoU for a steel plant worth 2500 crores in Bhilwara, despite the fact that two previous MoUs have not materialized. The government has extended the deadline, but the question remains as to why the steel plant has not been set up yet.

BhilwaraOct 28, 2024 / 06:09 pm

Patrika Desk

Preparations are in full swing for the Investment Summit in Bhilwara, but some MoUs to be signed during the summit have been signed before as well. Jindal Saw Ltd has prepared to sign a third MoU with the state government for a 2500-crore steel plant. Jindal has proposed to set up a steel plant, but the question arises as to why the steel plant has not been set up despite two previous MoUs.
Jindal was supposed to set up a steel plant in Pur in 2014, but time passed, and the mining department kept extending the deadline. Jindal has already signed two such agreements. In 2012, the government had allotted two mining leases of 1,989 hectares to Jindal in Dedwas and Lapia. According to the conditions, Jindal was supposed to set up a steel plant within two years. The mining department issued a notice on December 12, 2015, for not fulfilling the conditions, but no action was taken, and neither was the steel plant set up.
This is the third time an MoU has been signed, but this time too, Jindal has applied for the allocation of 45 bighas of land, which is still pending. According to the allocation conditions, pelletization was supposed to be done by December 8, 2012, and the steel plant was supposed to be set up by December 8, 2014. The company has set up a pelletization plant, but not the steel plant. The mining department has extended the deadline till December 2027 through an order dated June 19, 2023. If the plant is not set up, both mining leases will be cancelled, and a guarantee of 10 crores will be forfeited.
Besides this, a businessman who signed an MoU for 500 crores in the hotel sector has stated that he has backed out, yet his name is still on the list. During the Congress government’s tenure, this same businessman had signed an MoU for 500 crores. A textile group is also signing an MoU for 1500 crores, which had also signed an MoU for 1500 crores during the Congress government’s tenure.
Among all this, the question arises as to whether these MoUs will only remain on paper or will they bring employment and development. The government needs to take these MoUs seriously and ensure that they bring actual benefits.

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