Tuesday, January 3 2006 18:25 Hrs (IST) - World Time -

Bhubaneswar: The clash between tribals and police at Kalinga Nagar steel complex in Jajpur district yesterday (Jan 2, 2006) resulting in 13 deaths has cast a shadow on Orissa's efforts towards industrialisation.

It is not the first time that such an incident had occurred over establishment of a large industry in Orissa but the dimension of yesterday's carnage has been horrifying.

The incident had occurred at a time when the state was poised to attract big investment in the steel and aluminum sectors.

The Orissa Government had already signed 43 MOUs for establishment of steel plants in the state with a proposed investment of over rs. 1,18,000 crore with the South Korean Pohang Steel Company (POSCO) interested to set up a project at Paradip at a cost of Rs 51,000 crore.

It is also the largest foreign direct investment proposal for the country till now.

Tata steel, which has been embroiled in yesterday's fracas, had signed an MOU to establish a six million tonne capacity plant at Kalinga Nagar at a cost of Rs. 15,400 crore in two modules.

The incident occurred when the company took up earth work at the project site triggering a clash between tribals opposed to the project with the police.

Tata steel's earlier proposal to set up a ten million tonne steel project at Gopalpur in ganjam district had also run into trouble with police opening fire at Sindhigan in the project area on August 7, 1997.

Two women had been killed in stampede caused by the police action after which the company shelved the project.