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Home Corporate Social Responsibility

Nagarnar Steel Plant, Bhupesh Baghel and Disinvestment

India CSR by India CSR
January 1, 2021
in Corporate Social Responsibility, News
Reading Time: 3 mins read
Nagarnar Steel Plant-Progressing Bastar

Nagarnar Steel Plant-Progressing Bastar

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The Chhattisgarh assembly unanimously passed a resolution on backing the plans to purchase the National Mineral Development Corporation’s Nagarnar Steel Plant if the Centre disinvests it.

Speaking during the discussion over the resolution, chief minister Bhupesh Baghel urged the Centre against privatising the plant. “The central government has cleared the disinvestment… First, the demerger will take place before September 2021.”

Bahel said his predecessor, Raman Singh, in 2017 wrote to the Centre opposing the disinvestment citing Maoist insurgency in the state. “Singh had said that tribes have given land for the public sector unit. Even the legal advisor of the central government had suggested no for the sale.”

As per an official release, after the announcement of the Chief Minister, the government resolution titled “This House requests the Central Government not to disinvest the Nagarnar Steel Plant in Bastar district, established by NMDC, a Government of India undertaking. In the event of disinvestment, the Government of Chhattisgarh agrees to buy it,” was passed unanimously.

Baghel further said a Central government committee has cleared the disinvestment of the Nagarnar Steel Plant. First, a demerger will take place before September 2021.

“The Chief Minister said that this is an important event in the history of Chhattisgarh Legislative Assembly. He said that the question is about the identity of Chhattisgarh, the tribals of Bastar. The people of Bastar have an emotional attachment to it.

The land was given to the public sector undertaking, the mine was also given to National Mineral Development Corporation (NMDC) on the condition that it would set up a steel plant here. This was the intention of the state government as well as the people. There were frequent movements regarding this,” it stated.

In 2017, then Chief Minister Dr Raman Singh had through a letter to the Centre raised the issue that disinvestment will have an impact in controlling Naxalism.

He said that tribes had given land to the public sector unit. Even the legal advisor of the Central government had suggested ‘no’ to a sale.

Agriculture Minister Ravindra Choubey tabled the government resolution. He said National Mineral Development Corp (NMDC) with investment of Rs 20,000 crores installed the plant with the hope that it will benefit the state.

Still, it is non-operational but the Centre has given the nod for disinvestment. The government has acquired 610 hectares of land but only 100 hectares have been transferred to NMDC.

A delegation of MLAs and public representatives from Bastar division, led by Industry Minister Kawasi Lakhma, called on Chief Minister Bhupesh Baghel at his official residenceon Tuesday evening. The delegation expressed gratitude towards the Chief Minister for taking a bold decision to procure Nagarnar steel plant by the state government to protect the interests of the tribals.

People registered their concern over the disinvestment and impact on tribal villagers in Bastar region.

Dharamlal Kaushik, the opposition leader in the House, said the Bharatiya Janata Party (BJP) will also raise the issue with Centre.

State minister Ravindra Choubey said the land was acquired in Nagarnar for the plant and therefore people of the area had given their consent for it with a hope that it will generate indirect and direct employment. “But after knowing that the plant will be privatised, there is anger among local tribals,” he said.

An official said around 2,000 people are to be employed in the plant.

BJP lawmaker Ajay Chandrakar said the idea of disinvestment was introduced during the Congress’s rule at the Centre. He added during the disinvestment of Bharat Aluminium Company Limited in Korba district, then Chhattisgarh chief minister Ajit Jogi had also proposed to the Centre that the state government will buy it.

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