Jessop may set up 1 MT steel plant

Having turned around the disinvested public sector engineering giant Jessop after a gap of 15 years, the Ruia group is now planning to set up a one million tonne steel plant as part of its backward integration plan.

Group chairman B K Ruia said that West Bengal, Orissa and Jharkhand are the probable states where the steel plant would be set up, and added that the West Bengal government has already offered two-three suitable locations to the company.

The location of the steel plant, to be set up at an estimated cost of Rs 1,500-2,000 crore, would be decided on the basis of availability of raw material and other benefits, he added.

Ruia said the decision to set up a mini steel plant was part of the group's restructuring plan and also creating a backward integration plan for Jessop, which is expanding its activities in railway wagon and coach manufacturing, ship building and steel girders for bridges and flyovers.

The Rs 500 crore Ruia group has decided to exit from the textile sector, which was contributing 50% of its total turnover, and concentrate on engineering and sugar -  the group's other activities, he said.