JSW Steel close to clearing land hurdle for Salboni project

JSW Steel may clear the land-hurdle for its proposed three-million-tonne integrated steel plant at Salboni in West Bengal in a week's time.

The company has already declared readiness to achieve financial closure for the estimated Rs 20,000-crore project within a month from resolving the land issue. The project will also include a 300-MW captive plant.

According to sources, the State Government is in the advanced stage of regularising the possession of 297 acre of land directly purchased from the farmers.

JSW was holding the land – distributed across the proposed project area of 4,334 acres in small plots – without due notification under section 14Y of the West Bengal Land Reforms Act, 1955. According to the act, notification is mandatory for holding more than 24 acres in rural Bengal.

“We are trying our level best to resolve the issue at the earliest,” the State Commerce and Industry Minister, Mr Partha Chatterjee, told Business Line .

In a meeting on August 10, the State Government agreed to vest the 273 acres held over and above the permissible 24 acres and return the same to the company on payment of a transaction fee according to the provisions of the law.

When contacted, JSW sources expressed confidence in the initiative of the State Government. “We have already obtained all regulatory approvals as well as captive mines. Negotiation with banks and financial institutions are over. Once the land issue is resolved we will immediately achieve financial closure. The plant is set to be operational in 36 months,” a source said.

Incidentally, if implemented JSW Bengal Steel will be the second such investment in the State since Independence.

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