After JSW Steel, the second major steel project today got land for its first phase from the state government’s nodal agency, West Bengal Industrial Development Corporation (WBIDC).
Kolkata-based Jai Balaji Industries was handed over 748.97 acres in the Purulia district for the first phase of its Rs 16,000 crore steel, power and cement project. The company would get another 250 acres in the next 15-20 days from WBIDC.
State commerce and industry minister, Nirupam Sen said, the company would start on the project immediately despite the slowdown in the economy.
Jai Balaji would start work on land development activities as soon as other regulatory clearances like environmental were were in place.
The 748 acres had been acquired from 2,793 land-losers. The total land requirement was around 3,700 acres and would be given on lease to the company. The compensation of the land was fixed after consultations with all political parties.
Aditya Jajodia, chairman and managing director, Jai Balaji said, at least one member from each of the land-losing families would be given job.
The first phase of Rs 4,000 crore would entail setting up steelmaking capacity of two million tons, 400 MW of power and one million ton of cement.
The total project is for a five million steel plant, three million ton cement plant and 1,215 captive power plant.
Jajodia said, the economic meltdown had brought down cost of setting up the project. In March-April 2008, the investment envisaged for the complete project was to the tune of Rs 20,000 crore, but now it had come down to the original plan of Rs 16,000 crore. The debt-equity ratio of the project would be 2:1. Around 800 crore of debt was already secured. Jai Balaji has registered a turnover of Rs 1,000 crore during the first half of the current financial year.
Jajodia said, the first phase would go onstream in 36 months’ time. In the first phase, semi-finished products like slabs, billets and blooms would be produced. Sen said, the project would lead to setting up of many ancillary units. Apart from Jai Balaji, other steel companies that were setting up steel projects in Purulia were Adhunik and Shyam Steel.
After facing stiff resistance in land acquisition, the West Bengal government was looking to set up its major projects in the barren lands of Asansol, Bankura, Birbhum and Purulia. Las month, chief minister, Buddhadeb Bhattacharjee, laid the foundation stone for JSW Steel’s 10 million steel plant at Salboni in West Medinipur.
