The Hindu Business Line : Tata Steel meets its `commitment' to Jharkhand

The Government of Jharkhand and Tata Steel on Saturday signed a lease renewal agreement for land in Jamshedpur. With this, the Chairman of the Tata group, Mr Ratan Tata, has met a "commitment" to partner the State in facilitating its development and helping it transform into "one of the most progressive States in the country."

Mr Tata made these observations here after the lease renewal agreement for 64 sq. km of land in Jamshedpur was signed in the presence of the State Chief Minister, Mr Arjun Munda, and several ministers and senior officials of the Government of Jharkhand.

Mr P.P. Sharma, Chief Secretary of Jharkhand, signed the agreement on behalf of the State Government, while Mr B. Muthuraman, Managing Director of Tata Steel, signed it for the company. The earlier lease expired on December 31, 1995 and the issue had been pending since then. The lease has now been renewed for 30 years with retrospective effect from January 1, 1996.

Mr Tata said the Tata group's investment plan for Jharkhand had slowed down owing to the "element of uncertainty" over the lease renewal. And now that the issue has been resolved, the Tata group will explore investment opportunities in the State. "The signing of the lease gives us the strength and sense of comfort to look at what we can do to further invest in Jharkhand."

He said the Tatas would focus not only on investing in the State but also on creating skills and employment to bring about prosperity across the State.

Mr Tata said the renewal of the land lease was a "true expression of mutual faith and trust" and the Tata group looked forward to partnering in the State's development.

In his address, Mr Munda urged Mr Tata to set up greenfield projects in Jharkhand. He also requested him to consider a role for Tata Consultancy Services (TCS) in the growth of the State's IT sector. "The Tatas have been here with us for 100 years. We shall give you whatever you want. We want this relationship to continue for another 100 years and more."

Responding to the Chief Minister and addressing questions from reporters later, Mr Tata said he would consider the role TCS could play in the development of IT in Jharkhand.Besides lease rentals, Tata Steel would pay the State Government Rs 25 crore every year for 30 years towards medical insurance schemes for people below the poverty line. Tata Steel also handed over a cheque for Rs 150 crore for setting up a sports complex in Ranchi. The 2007 National Games is slated to be held in Ranchi and Jamshedpur.

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