Announces plan for a Rs 28,000-cr steel plant in southern state
In yet another setback to West Bengal’s industrialisation drive, Bhushan Steel today announced that it would spend Rs 28,000 crore to set up a six million tonne value-added steel plant in Karnataka, putting the Bengal project in doubt.
In what could be seen as a repeat of ArcelorMittal’s move, Neeraj Singal, managing director of Bhushan Steel, said, “If the Bengal project does not progress, we will set up the Karnataka project first. We will do both the projects, but take up one at a time.” Singal’s comment implied that the Bengal project would then be delayed indefinitely.
It is worth to be mentioned here that in 2005, ArcelorMittal had signed an MoU with the Jharkhand government for its steel plant project, but then signed another MoU with the Orissa government for the same in the following year, unhappy with delays.
Bhushan Steel’s West Bengal project is stuck as Coal India raised objections to having industrial projects in the Asansol-Durgapur coal belt. However, the proposed plant does not come under Coal India’s licensed area.
According to Singal, the Bengal project is blocking very little coal, that too at a depth of 800 meters to 1 km.
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However, the state government and the coal ministry are understood to be deliberating over the issue. “I have sought an appointment with the West Bengal chief minister,” said Singal.
He pointed out that ultimately both the Karnataka and Bengal projects would happen, but one at a time.
In Orissa, Bhushan Steel has already commissioned the first phase (2.5 million tonnes) of its plant and the second phase would be ready by early 2012. The capacity of the plant would be 5.5-6 million tonnes.
Coal India’s stance is not only holding up Bhushan Steel’s project, but also steel plants of Videocon and Abhijit Group.
The investment in these three projects would be around Rs 57,000 crore.