The political arena of Odisha is heating up as speculation swirls around Japan's ArcelorMittal-Nippon Steel potentially shifting its proposed steel plant from the state to neighboring Andhra Pradesh. The Biju Janata Dal (BJD) and Congress parties have seized upon these rumors, launching sharp criticisms against the ruling BJP government for possibly losing such a significant investment opportunity.
The backdrop to this controversy includes remarks made earlier this year by Eiji Hashimoto, the president of Nippon Steel Corp, to then-Chief Minister Naveen Patnaik. Hashimoto expressed the company's commitment to establishing the largest and most advanced steel facility in Odisha, boasting a capacity of 30 million tonnes per annum (MTPA).
Recently, national media reports have sparked alarm, indicating plans for the steel plant to be relocated to Nakkapalle, within Andhra Pradesh's Anakapalle district. This facility, if constructed, would operate at 24 MTPA and require approximately Rs 1.5 lakh crore for development. C.M Ramesh, MP from Anakapalle, confirmed on social media platforms the engagements between ArcelorMittal-Nippon Steel delegates and the Andhra Pradesh IT minister Nara Lokesh, stating discussions took place about establishing the plant.
The BJD's criticism has been particularly vocal, with senior leader Pratap Keshari Deb lamenting the potential economic blow to Odisha, should these reports prove accurate. He stressed the importance of the investment, calling it "the single-largest investment of the country" and lamented what he sees as lost hope among investors since the formation of the new government.
Echoing Deb's sentiments, Pratap Jena, another leading figure within the party, emphasized the necessity of trust between investors and the government, noting the shift away from Odisha as indicative of broader trust issues with the ruling BJP regime compared to the previous government under Patnaik.
The Congress party has similarly weighed in, with legislature party leader Rama Chandra Kadam stating the current government should prioritize the steel plant project if it was previously committed. Kadam argues any shift to Andhra Pradesh would reflect poorly on the Odisha government.
Against this backdrop of political tension, Odisha's Industries Minister, Sampad Chandra Swain from the BJP, sought to quell the unrest, insisting the steel plant would remain firmly rooted in Kendrapara. He accused BJD leaders of misleading the public, asserting, "There is no possibility of ArcelorMittal leaving the State... 200 Indian and Japanese employees of the company are currently working here to boost project acceleration." Swain’s statement attempted to bolster the government's image by reiteratively asserting the company’s commitment to Odisha.
Throughout this turbulent situation, the stakes for Odisha couldn’t be higher. The outcome could significantly influence the state’s economic and industrial standing, potentially drawing investors' interest or driving them away. Questions remain about the state's future investment climate as residents and officials watch closely for developments.
The political wrangling over the future of the ArcelorMittal-Nippon Steel plant highlights the fierce competition among states to attract major industrial projects. With the proposed facility capable of generating thousands of jobs and contributing massively to the local economy, the urgency and significance of the current discourse cannot be overstated. Observers are left pondering not just the fate of the steel plant, but the broader implications for industrial policy and governance practices within Odisha and beyond.
