The Jharkhand government has issued a show cause notice to TATA Steel seeking explanation in regard with the memorandum of understanding it had signed with the government to set up a greenfield project in neighbouring Seraikela-Kharswan district in 2005.

Mr AP Singh secretary (industry) government of Jharkhand, told newsmen that TATA Steel had signed two MOUs with the state government one for the Seraikela-Kharswan project and the other was for the expansion of the brownfield project situated at Jamshedpur.

The company had already invested between INR 22-25,000 crores for Jamshedpur plant and expansion work was near completion.

Mr Singh complained that the company has been spending its energy behind the ongoing modernisation program at the Jamshedpur plant.

The state government has also allotted them a mine, he said admitting that land acquisition remained an issue for the greenfield project.

Source - Money Control

(www.steelguru.com)