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Court clears decks for Tata's project in Orissa

New Delhi: A Supreme Court Bench headed by Justice G.P. Mathur on Thursday cleared the decks for Tata Steel's Rs.15,400 crore steel project in Orissa and rejected a plea filed by the Kalinga Power Corporation Ltd (KPCL) against the State Government's decision to allot land to the firm. In an interim order in October 2005, the apex court allowed Tata Steel to begin its six million tonne steel project, pending a final order on a petition filed by KPCL.

In 1994, the State Government allotted 1,000 acres of land (129.36 acres of government land and 870.62 acres of private land) to KPCL for setting up two power generation units of 250 MW each at the Kalinga Nagar Industrial complex in Dubri. But the allotment was cancelled in December 2004. This order was challenged by KPCL in the Orissa High Court, saying the Government's reason that it was unable to free the land from villagers was false. However, the Orissa Industrial Infrastructure Development Corporation had argued that KPCL had failed to pay the cost of the land and Tata Steel was given the land after it paid the entire amount.

The High Court had dismissed petition on the ground that land allotment was provisional, prompting the company to file a petition in the Supreme Court. — PTI

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