Decision comes amid series of negative developments in state
Despite the political turmoil, Delhi-based Bhushan Steel, has decided to scale up the capacity of its proposed steel project in Bengal to six million tonnes, irrespective of a partnership with Japan’s Sumitomo Metal Industries.
Bhushan Steel sources said, discussions with Sumitomo were on, but it was not yet confirmed. Discussions with Sumitomo were on for a while about investing in the Bengal project.
However, Bhushan Steel had decided to set up a six million tonne in Bengal against the original plan of a two million tonne integrated steel project with a captive power plant.
“If the partnership with Sumitomo materialises then the six million tonne will be expedited, otherwise we will do it in phases,” said sources. Additional land would not be required for the increased capacity.
The land requirement for the original project was 2,500 acres. Sources indicated that the company would squeeze in six million tonnes in the same land in the Bardhaman district. The change in plan had been communicated to the state government.
Bhushan had set a timeline till December for Sumitomo to decide on the project. The changes in the project would have to be incorporated in the memorandum of understanding (MoU) with the West Bengal government.
“We will rework the MoU. We are waiting to see whether Sumitomo invests in the project because then that will have to be incorporated in the MoU,” said sources. Sumitomo happens to be a technical partner in Bhushan Steel’s Orissa project.
The investment in the original Bengal project was estimated to be Rs 8,800 crore, which also included a 0.5 million tonne cold rolling and galvanizing plant for automobile grade steel. However, the changed size of the project implied that investment would more than double.
Sources said, the final public hearing was on. The rehabilitation package, which included land-for land, had been finalised, but was yet to be announced formally by the company. Sources said, it was conveyed to the land losers.
