JSW event sees Mamata's industry-friendly face

CM asks land-losers not to be 'impatient'; tells party workers not to 'interfere' in the project

It is unusual for a chief minister to wait for an industrialist to turn up for the foundation stone laying ceremony of his project. When the head of the state happens to be the doughty Mamata Banerjee whose immediate credentials before the Assembly elections of 2011 was to drive away Tata group's Nano project from Bengal, it becomes near-inconceivable.

However, Banerjee on Wednesday waited for about half an hour at Salboni in West Medinipur before JSW group's chairman and managing director Sajjan Jindal made it to the site. The event was the foundation stone laying ceremony of JSW Cement's 2.4-million tonne per annum (mtpa) plant. Jindal's flight got delayed, first due to bad weather and then on account of security measures in the wake of President Pranab Mukherjee's visit.

TIMELINE

• 2008: Then Bengal CM Buddhadeb Bhattacharjee lays steel plant's foundation stone
• 2009: Sajjan Jindal says the project has been delayed due to the global financial crisis
• Jul ‘11: CM Mamata Banerjee publicly expresses disapproval over delay in project
• Aug ‘11: Rumblings about JSW land acquisition start
• Sep ‘11: Jindal meets CM; Banerjee says all issues will be resolved
• 2014: Jindal says project looks difficult without raw material linkages
• 2016: Mamata Banerjee lays foundation stone for cement plant

The project is the first of a series that the JSW group is planning at Salboni where it has 4,300 acres in possession. The project would use only 134 acres and the investment would be around Rs 800 crore.

The project, as conceived during the regime of the earlier Left Front government in 2007, was a 10 mtpa steel plant and a 1,600 Mw power plant.

"It was our dream to set up a mega steel plant. The government tried its best to pave the way for the project, but there were problems with raw material linkages. The cement plant is a small industrial activity that we are initiating at this site. We are also planning a paints factory and downstream steel units," Jindal told the gathering that included 571 land loser families.

JSW Cement would be boosting the capacity to 4.8 mtpa in the next 36 months. Plans are afoot to set up two power units of 660 megawatt (Mw) each that would entail an investment of Rs 8,000 crore. The investment in the paints unit, which would be a new business vertical for the group, was likely to cost Rs 1,000 crore. All put together, the JSW group has laid out investment plans totalling Rs 10,000 crore.

"A lot of land would still be left unused. We are not sure how to handle this. We are proposing many more industries," said Sajjan Jindal. Does it mean that the mega steel plant is shelved?

"Let's say, it's on the back burner," Jindal said in response to a query at the press conference later. The original JSW project happened to be Bengal's single largest investment at Rs 35,000 crore.

But, Salboni is willing to wait out, at least that's a promise that the chief minister managed to extract from the land losers.

"Don't be impatient. Of the 571 land loser families, 85 have already got jobs. They have promised in phases the rest will also be employed. This land is a gold mine; it's right next to the National Highway," she said, addressing the land losers from the dais.

Sajjan means 'bhadra', she added. "Let them do their work. We must not interfere in their work," a clear message to Trinamool Congress-backed 'syndicates' that have become a menace in West Bengal. JSW Cement would employ 250 people on a permanent basis and another 600 on contract. "You have got a new gift in the new year. Let us nurture it," the CM said in what seemed like an earnest request.

At the press conference, Jindal said he was amazed by the chief minister. "She told the people, don't expect too much. She was already bringing down expectations."

Paints foray

The JSW group today said that it was actively exploring entering the paints business. "We are already into cement and TMT bars, so why not look at paints which is also required for making a home," said Parth Jindal. The foray could be a greenfield venture or an acquisition and was likely to be finalised over the next six months to a year's time.

Sharif connection
Sajjan Jindal today cleared the air on his equation with Pakistan Prime Minister Nawaz Sharif. "We are family friends for more than 20 years now," he said. Asked whether he had any role to play in facilitating the recent meeting between Prime Minister Narendra Modi and Prime Minister Sharif, Jindal said, "It was just a coincidence that I happened to be in Lahore when the meeting happened. I was there to attend the wedding of Prime Minister Sharif's granddaughter."