The Tata group has decided to set up a mega steel plant in the naxal infested Bastar region of Chhattisgarh with an investment of about Rs 5000 crore (Rs 50 billion).
"The state government on Thursday cleared the proposal of the Tata Iron and Steel Company Limited for setting up of an integrated steel plant in Bastar," sources close to the chief minister said.
The integrated steel plant will have a capacity of five million tonnes for which the Tatas will invest over Rs 5000 crore, sources said.
The project will change the future of the underdeveloped and tribal dominated Bastar region of the state, they said.
Currently, SAIL unit's Bhilai steel plant is the only major steel plant in the state, which is also giving a good revenue to the state government in terms of taxes.
The National Mineral Development Corporation had announced to start a mega steel plant in Nagarnar of Bastar district, but the project has been delayed because of the selection of technology for the project, sources said.
The state government has also cleared the proposal of a joint venture of 1000 MW thermal power plant with an investment of Rs 5000 crore, sources said.
