Salim's twin Bengal projects may be split

The twin projects of the Indonesia-based Salim group "" a chemical hub and a multi-product SEZ "" are likely to be split over two locations, following the government's decision to relocate from Nandigram in West Bengal in the aftermath of an incident earlier this month that left 15 villagers dead.

The West Bengal government is likely to shift the chemical hub project to Haldia since it requires proximity to a port.

However, Haldia "" at a stone's throw from Nandigram "" is not big enough to harbour both projects. The chemical hub would require 10,000 acres, while the multi-product SEZ would be spread across 12,500 acres.

State Commerce and Industry Minister Nirupam Sen said splitting the two projects was definitely a possibility and within policy guidelines.

Commerce & Industry Secretary Sabysachi Sen said, "The chemical hub is our first priority. If we are able to accommodate the SEZ at that site we will do it, otherwise we will shift it elsewhere."

The government is likely to make a fresh application to the Union Ministry of Chemicals and Fertilisers to consider Haldia as one of the locations.

Unlike Nandigram, which is hardly developed, Haldia has had a steady flow of investments, also implying that there is not much land available for new industries.

One of the first investments at Haldia was the state's showcase project, the Rs 5,170 crore Haldia Petrochemicals Ltd (HPL). It was followed by Mitsubishi Chemicals' project.

The company recently announced plans to increase its plant's capacity to 8 lakh tonne by June 2008, taking its total investment to Rs 3,140 crore. Hooghly Met Coke and Power is also setting up its coke oven plant in the area.