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Our Bureau

Kolkata, Dec. 29 The West Bengal Government today allotted 748.97 acres of land to Jai Balaji Industries for setting up an integrated steel plant at Raghunathpur in Purulia district. The lease holding agreement in this connection will be signed later.

“We will get another 250 acres over and above this within the next 10-15 days,” the company Chairman and Managing Director, Mr Aditya Jajodia, said after receiving the land allotment order. The company sought a total of Rs 3,700 crore for setting up a five-million tonne integrated steel plant.

In the first phase, the company is slated to invest Rs 4,000 crore including Rs 1,500 crore in setting up a 400 MW power plant, Rs 200 crore in setting up a cement facility and the rest Rs 2,300 crore in setting up a two-million tonne steel plant. In the second phase, the company will add another three million tonne steel making capacity.

“The project cost has come down by 25 per cent due to the global meltdown,” Mr Jajodia said. According to him, the first phase would be completed in three years.

Jai Balaji currently has a total steel-making capacity of 1.1 million tonne in two facilities in West Bengal and Chhattisgarh. According to Mr Jajodia, the company posted a turnover of Rs 1,500 crore during 2007-08.

“We initially planned to set up finishing lines beginning first phase. However, there is some changes in the project planning due to the global crisis. We expect to complete the detailed project report in a month followed by financial closure,” he said.

Some changes may also take place in the project finance plans. The company has already raised Rs 300 crore from the equity market in early 2008 for financing the project.

Earlier responding to queries, the State Commerce and Industry Minister, Mr Nirupam Sen, admitted that the financial crisis may impact the flow of investments in the State. “However, so far we are not impacted and the projects keep coming to the State,” he added.

More Stories on : Policy | New Projects | Steel | West Bengal

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