SAIL Expansion of Rourkela Steel Plant Stalled Due to Land Acquisition Issues

SAIL's Rourkela Steel Plant expansion stalled due to land issues; 30,000 crore INR project delayed, hopes rise with new BJP-led government.

Rourkela, Odisha : The ambitious expansion project of the Rourkela Steel Plant (RSP), overseen by the Steel Authority of India Limited (SAIL), has hit a significant roadblock due to unresolved land acquisition challenges. Despite an initial approval and a substantial allocation of ₹30,000 crore for the project, the expansion has yet to commence.

High Hopes Dashed by Encroachments

The decision to expand the RSP, which currently has an annual hot metal production capacity of 4.5 million tons, was made in 2021. The project aimed to bolster this capacity and included the establishment of new facilities such as iron and steel mills, a raw material handling plant, coke ovens, a sintering plant, blast furnaces, a steel melting shop, and other auxiliary units.

However, the project has encountered significant delays due to persistent land acquisition issues. The expansion requires approximately 2,000 acres of land, and efforts were made to clear encroachments in several areas, including Barkani Basti, Bahagada Basti, Diesel Colony Basti, Bijubandh Basti, Rengali Basti, Kate Basti, and Girijatoli Basti. These areas house around 295 families who have opposed the land acquisition from the outset.

State Government's Inaction and Opposition from Residents

Over the past three years, RSP has repeatedly urged the state government to take necessary measures to address these encroachments, but to no avail. The residents, many of whom have been living in these areas for 50 to 60 years, have vehemently opposed the eviction, further complicating the situation.

Despite multiple high-level meetings with the administration and proposals for relocation and compensation packages for the displaced families, no conclusive decisions have been reached. This lack of progress has pushed the project into uncertainty.

Changing Political Landscape Sparks New Hope

The recent change in the state government, coupled with the BJP leading both the state and central governments, has rekindled hope for the project's revival. Stakeholders are optimistic that the new political alignment might expedite the resolution of the land acquisition issues and pave the way for the much-needed expansion of the RSP.

SAIL's Broader Expansion Plans

While the Rourkela project remains stalled, SAIL has already sanctioned funds for the expansion of other plants, including IISCO and Bokaro Steel Plant. The successful implementation of these projects underscores the importance of overcoming the hurdles faced by the RSP expansion.

The expansion of the Rourkela Steel Plant is crucial for enhancing India's steel production capacity and meeting growing domestic and international demand. Resolving the land acquisition issues and addressing the concerns of the affected families will be essential steps in moving the project forward and ensuring its successful implementation.