'A Few Hamlets Are Misguided'

Despite most of the MLAs approving the present site, do you expect trouble from the locals?

I don't think so. When a government acquires land, there is bound to be resistance. There are only a few hamlets which are being misguided by vested interests. We expect to start work by January.

How much is the total compensation would Tisco have to pay?

It will depend on the survey. It is a long-drawn and cumbersome process. My guesstimate would be Rs 150-170 crore. And this will be the direct compensation paid. The indirect compensational benefits: infrastructure improvement, training of youth, employment potential and so on, are difficult to quantify.

There's a feeling that Tisco is shortchanging the villagers...

At Gopalpur, we are paying the highest ever compensation rates in this country. The market rate of the land is only Rs 40,000 per acre. Even the collectorate of the district had affixed our package as 62,000 per acre, but on request from J.B. Patnaik, we have decided to pay a minimum compensation of Rs 1 lakh per acre. Besides, paying individually for trees and building houses for each displaced family. With industrial development, opportunities for the natives are bound to increase. Construction activity is going to boom, they can start brick kilns. There's so much potential.

Why then do you think the locals are resisting?

It's the vested interests like the kewda distillers—most of whom are from Kanauj in Uttar Pradesh—who have the most to lose. They come here for a few months every year, buy flowers from the locals, mint money and take the kewda extract out of the state. Since all of them will have to shut shop, I won't be surprised if they are even financing the resistance.

Which market segment are you aiming at with this steel plant?

The import market. This will be an extremely modern integrated plant. With the cold rolling mill, we will be targeting the auto segment which has to import auto grade steel. We will also export 15 per cent of our production to maintain an international presence. We'll be the cheapest manufacturer, thanks to our proximity to the Gopalpur port. To move steel from Jamshedpur to Bombay by road is more expensive than moving steel from Amsterdam to Bombay or Jamshedpur by sea.

There are charges that you are interested in the area to exploit prawn farming in the Chilika region...

We have no interest in prawn culture.