Mamata Banerjee-led West Bengal government’s endeavour to tide over the anti-industry image has got yet another jolt. Engineering major Larsen & Toubro (L&T) is likely to have dropped its plan to come up with a 1600 mega watt power plant in West Bengal due to land hurdles.
The project, which the company was considering “following an invitation” from the state government Rs 10,000-Rs 11,000 crore was “dropped” according to sources as the state government was unable to provide favourable land. When asked about this, the state commerce and industries minister Partha Chatterjee, said, “They are not interested in setting up the plant. We had shown them land in North Bengal and West Midnapore, from our land bank but the company is not keen at all.”
The state’s plan was to give land from its identified 900,000 acre for a land bank, as the new land policy does not allow government-sponsored land acquisition. In December, the company officials had several round of meetings with the state industries minister and even the chief minister regarding the project. Then the company officials had confirmed that three-four locations are under consideration for the project. On the future of the project a top company official said, “We had made it clear to the state government that without proper availability of land, water and linkages we would not go ahead with the project. We needed about 1200 acres of land for it, but the locations with in the land bank that the state government had shown is not favourable at all. We are not going to acquire land directly also. Hence, it is unlikely to happen.”
Adding further the official said, “The state government can say come and do this, but the firm has no money to burn on a project with out any future or linkages.” While the firm’s proposal was to set up a 2x800 (1600 MW) plant with an investment between Rs 10,00 to Rs 11,000 crore in the first phase, they were also looking for additional land for a second phase of another 2x800 MW.
There were even speculations that the firm might also chip in as a joint venture partner in the proposed 1320 MW thermal power project at Adra in Purulia district which is being planned by NTPC and Indian Railways. Soon after the new government took charge, the firm’s chairman A M Naik had visited Banerjee.
