Even as the West Bengal government is grappling with obstacles in its industrialization initiative, it has decided to impose stringent norms on companies acquiring land for proposed projects.
The West Bengal Industrial Development Corporation (WBIDC), which is acquiring land for most of projects, has decided not to acquire land for individual companies, but convert the proposed projects into industrial parks, in a bid to maximize employment.
Speaking on the sidelines of the foundation stone laying ceremony of Shyam Steel in Purulia, WBIDC managing director, Subrata Gupta said that each of the proposed steel projects for which WBIDC was acquiring land would be made steel parks where the company would be an anchor investor.
Apart from Shyam Steel, Jai Balaji and Adhunik, would be setting up steel plants. But the three plants would now be anchor investors in three steel parks.
Around 15-20 per cent of the land would be reserved for downstream units and ancillaries. Gupta said, the ancillaries and downstream units were more labour intensive and would generate more employment than the steel plant.
Even Bhushan Steel, which was setting up a plant in Bengal, would now be an anchor investor in a steel park. Bhushan Steel was planning to triple the size of its plant in the state, in partnership with Sumitomo Corporation.
Gupta said, the lease would be in the name of the individual companies.
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Also, an expert committee formed by WBIDC would set milestones of progress for the projects. Gupta said, the milestones were being set in consultation with the companies but once the targets were set, the companies would have to adhere to it or else WBIDC could take the land back.
Land apart, the scope of the expert committee also included technology, water, environment and coal linkages.
The proposed investment in West Bengal’s steel sector has already crossed Rs 1 lakh crore. Gupta said, the new norms would be followed not just for steel projects but all projects for which WBIDC would acquire land.
Chief minister, Buddhadeb Bhattacharjee, who laid the foundation stone for the Shyam Steel project, batted for industrialization and said that most people of the state understood that it would lead to job creation.
He said, Shyam Steel’s 1.1 million ton steel plant would entail direct employment for more than 2,000 people while indirect would be in excess of 11,000.