Jai Balaji to offer jobs to land losers

Kolkata-based steelmaker Jai Balaji Industries will offer jobs to people displaced by its proposed steel project in West Bengal, said Chairman and Managing Director Aditya Jajodia at the company's annual general meeting.

The project would create direct employment for 7,000-8,000 people and Jai Balaji would try to absorb as many land losers as possible, Jajodia said, adding that the rehabilitation package was being worked out.

The acquisition of the land, both private and government, had been initiated by the West Bengal Industrial Development Corporation (WBIDC), he said.

The Rs 16,000 crore 5 million tonnes steel plant, including a 3 million tonnes cement plant and 1,214 mw captive power plant near Purulia, would require 4,000 acres.

The first phase of the project, which would source iron ore fines from the neighbouring states of Jharkhand and Orissa, will be completed in three years.

A training institute will also be set up near the project site for upgrading the skill levels of the workers. However, the number of land losers is not yet known. The company is expected to sign a MoU with the West Bengal government shortly.

By buying iron ore fines from the spot market vis-à-vis mining from a captive source, the company will be at a cost disadvantage of Rs 1,000 per tonne. "Raw material is not the only key requirement in a steel project. Infrastructure, water and transportation are equally important and available in West Bengal," Jajodia said.

Jai Balaji is the second company, setting up a steel plant in the state, to announce jobs to land losers. JSW Steel, which is setting up a 10 million tonnes plant in the state, has also announced one job per family as part of its rehabilitation package to land losers.

Jai Balaji has also received in-principle approval for setting up a special economic zone (SEZ) in West Bengal from the Board of Approval (BoA) of the government of India.

The company will invest Rs 450 crore in a steel processing centre in the SEZ. Other steel companies will also be invited to participate in the project. Currently, Jai Balaji has a steel making capacity of 1.2 million tonnes.