The Hindu Business Line : JSW Steel plant may go on stream in 2011

Kolkata May 31 Production at JSW Steel's proposed greenfield plant in West Bengal is slated to begin from April 2011, Mr Sajjan Jindal, Vice-Chairman of the Sajjan Jindal Group, told newspersons in Writers' Building after discussing the progress of the project with the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee.

Mr Jindal said the group would offer shares in the company — JSW Bengal Steel Ltd — to those who sell their private land holdings for the setting up of the 10 million tonnes per annum (mtpa) integrated steel plant at Salboni near Kharagpur.

Pact with Bengal Govt

Earlier in January this year, the Sajjan Jindal Group had inked a memorandum of agreement with the Bengal Government for setting up the proposed plant at an estimated cumulative investment of Rs 35,000 crore. The first phase, with a capacity of three mtpa and an investment of Rs 10,000 crore, is scheduled to be ready in the next four years.

Land acquired

Talking to newspersons, Mr Bhattacherjee said the project would be set up under the banner of JSW Bengal Steel Ltd, a newly formed company in which the Jindals hold 89 per cent equity stake, with the balance 11 per cent being held by the West Bengal Industrial Development Corporation Ltd.

Mr Bhattacharjee said about 5,000 acres of land would be required for implementation of the project. Of this, the State Government has allocated 3,798 acres held by it.

Job provision

The State's Animal Resources Department has given 877 acres while the Jindals had purchased 450 acres directly from landowners in the area. A total of 741 families have been affected and one member in each such family would be imparted with appropriate training before being provided with a job.

According to Mr Bhattacharjee, water for the steel project would be sourced from the nearby Rupnarayan River. The proposed plant's iron ore requirements would, however, have to be met from the Jindals' own sources, he said.

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