Tuesday, September 2, 2008

After Singur its Lohndiguda in Bastar for Tata-Double trouble for the Tata's

*SC issued notices against TISCO, Essar Projects in Chhattisgarh*

The Supreme Court issued notices to the Centre, Chhattisgarh government,
TISCO and ESSAR Steel Chhattisgarh Limited on a petition seeking
cancellation of the Memorandum of Understanding (MoU) signed by the state
government with the top two steel giants for setting up of iron, steel and
power projects in the state.

A bench comprising Chief Justice K G Balakrishnan and Justice P Sathasivam
issued notices after hearing the counsel for the petitioner, who contended
that the interests of the state have been compromised and if the MoU's dated
June 4, 2005 and July 5, 2005 signed with TISCO and ESSAR respectively were
not quashed, it would cause huge losses to the state exchequer.

Petitioner Sudiep Shrivastava also alleged that the royalty rates for iron
ore have been fixed at meagre rate of Rs 4 to Rs 27 per tonne while the
market rate of iron ore was around Rs 2000 per tonne.

The concept of competitiveness, fair play, transparency and public interest
have been thrown to winds and the royalty rates have been fixed hardly at
one per cent of the market vale.

The petitioner has further alleged that even the Public Sector Undertakings
(PSUS) have been ignored in order to provide land and other infrastructure
to these two favourite companies at throwaway prices.

The petitioner has challenged the Chhattisgarh High Court judgement dated
September 7, 2006 vide which the PIL of the petitioner was dismissed.

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