Odisha Government Initiates Land Acquisition for ArcelorMittal’s Rs 1.02-Lakh Crore Steel Plant in Kendrapada

The Odisha state government has begun the process to acquire 383 acres of land for the first phase of ArcelorMittal Nippon Steel’s proposed 24 MTPA steel plant in Kendrapada district. On December 3, the Revenue and Disaster Management Department issued a notification under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013. This Rs 1.02-lakh crore project will be located in Badatubi village, Mahakalapada block.

Land Acquisition Process

The Odisha Industrial Infrastructure Development Corporation (IDCO) will manage the land acquisition and hand it over to AM/NS. Displaced villagers will receive compensation according to the law, confirmed Nilu Mohapatra, the additional district magistrate of Kendrapada.

A Vision for Global Leadership

The project traces back to an April 2023 meeting between Odisha’s former Chief Minister Naveen Patnaik and Nippon Steel Corporation President Eiji Hashimoto in Tokyo. Once complete, the plant will become the largest steel facility in the world, surpassing Posco’s 23 MTPA plant in South Korea.

Mixed Local Reactions

The proposed project has sparked differing opinions among local residents. Some, like Manas Mandal from Badatubi, are hopeful that the steel plant will bring development to their village. Others, like Haripada Maiti, oppose the plan, saying, “The government has no right to take away our lands. Rice cultivation, betel vines, and fishing are our main sources of income.”

Environmental Concerns

Environmentalists are also raising concerns. Hemant Rout, a local environmentalist, referred to a 2021 NASA analysis warning that Paradip and nearby areas could be submerged by 2100. He argues that building the steel plant in a coastal area will only worsen sea erosion.

Demands for Higher Compensation

While some villagers support the project, others demand higher compensation. Sarat Haldar, for instance, is calling for Rs 50 lakh per acre. The state government has posted the notification in the Ramnagar, Kharinashi, and Batighar gram panchayats after gram sabha meetings earlier this month. Additional land will be acquired in future phases of the project.

ArcelorMittal’s executive chairman, L N Mittal, visited the site in August 2021. The steel plant is expected to be a major milestone for the region’s infrastructure development, despite local challenges.