The Hindu Business Line : Top priority for environmental clearances, says JSW Steel

"Ground realities of proposed JSW site are different from the other locations in the State. We do not foresee any specific hurdle in executing the project, since we have the support of both the Government and the local population."

MR SAJJAN JINDAL

Chennai June 18 JSW Steel, which has been offered 4,000 plus acres by the West Bengal Government to set up a 10-million-tonne steel plant at an investment of Rs 10,000 crore, has started work on plans for additional land purchase, obtaining environmental clearances, and development of external infrastructure such as roads, water and power.

Speaking to Business Line on a range of issues confronting the JSW Group in the light of recent public backlash in the State against land acquisition for industrial purposes, Mr Sajjan Jindal, Vice-Chairman and Managing Director, said that a purchase committee has been formed in consultation with the local administration for the purpose of procuring some 600 acres of private land directly from land owners.

"This committee has identified all the land owners and the purchase activities will start soon," he added.

The company plans to complete this activity in three months. Mr Jindal also said that once this process is accomplished, work on securing the land with a proper boundary wall would be initiated. "This, in itself will be a big job as we are talking of a perimeter of over 25 km!"

According to him, the ground realities of the proposed JSW site are different from the other locations in the State. "We do not foresee any specific hurdle in executing the project, since we have the support of both the Government and the local population."

He also said that the company has not sought any "extraordinary tax concessions" from the State Government.

JSW is according highest priority to obtaining environmental clearances at the State and Central levels, for which it has already set up baseline data-generating stations at the site.

"The Ministry of Environment and Forests is examining our application. We expect to conduct the public hearing just after the monsoon."

He added that the company has also obtained all necessary approvals from the Departments concerned for the development of external infrastructure.

On the key issue of manpower, Mr Jindal expressed confidence about meeting the manpower needs from within the State. "West Bengal has a large pool of trained manpower. Besides, we also propose to give additional training to local manpower who have not had formal education but whom we would like to involve in the project."

On the other key issue of raw material sourcing, the JSW Managing Director said that the company proposes to procure raw material directly from suppliers. "We will not be owning any captive mines."

JSW is not looking for cost advantages on a short-term basis, he said. "At our plant in Karnataka, we are among the world's lowest-cost steel producers." Mr Jindal was confident that for the current project too JSW would utilise innovative ideas to maintain cost competitiveness.

"Raw material security is always a matter requiring serious attention, especially for a project of this magnitude; we have started addressing these issues one by one."

Besides cost efficiencies, JSW is aiming at energy efficiency and near-zero effluent status for the project. "The plant will take the conventional coke oven-blast furnace-basic oxygen furnace route. The blast furnaces will be the largest in the country. Besides, it will house a captive power plant."

Bullish on the demand for steel, Mr Jindal said that the trend will only see an upswing, fuelled by the domestic demand of growing economies such as India, China and Russia.

"The only constraint to growth is the limited access to raw material sources. Our Government is trying to find a solution for the benefit of all players. We expect that suitable agreements will be reached soon."

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