Mr Sajjan Jindal controlled JSW Steel Ltd on Saturday claimed that it would start construction of its Rs 35,000- crore integrated steel plant at Salboni in West Bengal after the festival season in October. Commercial production, for the first phase of the project, is expected to begin in 2014.

If implemented, it will be the first major investment under the Ms Mamata Banerjee-led government in the State. In the first phase, the company plans to build a three-million-tonne steel plant coupled with 300-MW captive power plant at an investment of Rs 20,000 crore.

“We have spoken to the Chief Minister and are hopeful of sorting out the technical issues that include land and water in another 15 days time. We will start construction work after the Durga Puja holidays,” Mr Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel told reporters at Writers' Building here on Saturday.

Mr Jindal met the CM and State Commerce and Industry Minister, Mr Partha Chatterjee to discuss land issues relating to the project.

The project came under question from the West Bengal government following problems relating to acquisition of land above a specified ceiling.

According to JSW officials, the company had directly acquired 296.6 acres out of a project area of 4,334 acres; but failed to notify it under Section 14Y of the Land Reforms Act, 1955.

The Act imposes restrictions on holding more than 24 acres in rural Bengal.

Industry is exempted from the ceiling, subject to approval of state government.

The company however, is in possession of the remaining land.

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