With the Indian steel sector facing hurdles in implementing projects, the Centre has asked states to implement the MoUs entered into for projects in the sector.

A confidential concept paper titled 'Ultra Mega Steel Plants: Need of the Hour' said that "Concerned states are basking in the glory of these MoUs with hardly any effort on their part to see that these are translated into reality. Not a single large greenfield steel plant has seen light of the day.”

The concept paper prepared by the steel ministry was circulated among Orissa government officials during an inter ministerial Group meeting on August 5.

It said that though more than 160 MoUs 45 in Orissa and 57 each in Jharkhand and Chhatishgarh were signed by the three states in the last three years, even mega steel projects of the size of 10 to 12 million tonne capacity were not implemented.

It observed that some of the MoUs signed for setting up ultra mega steel plants at investments of INR 40,000 crore to INR 50,000 crore, were also not implemented.

Of the MoUs signed in Orissa, two were projects mooted by POSCO India and ArcelorMittal of 12 million tonne per annum capacity with each having been identified as Ultra Mega Steel Plants.

An official said that "These two projects have not been implemented though five years have already passed since the MoU was signed.”

(Sourced from ET)