Although the tobacco giant did not formally apply for land to the state government, it did approach West Bengal Industrial Development Corp (WBIDC) chairman Somnath Chatterjee, who is also a prominent leader of the ruling CPI(M), in January.
State government sources said Chatterjee forwarded the letter from ITC to Chief Minister Jyoti Basu in August.
The letter is, however, believed to be gathering dust at the Chief Ministers office.
Meanwhile, ITC has been scouting on its own for land for the proposed factory.
The company has already held negotiations with individual landowners at Diamond Harbour road in South 24 Paraganas district and at eastern metropolitan bypass.
The eastern bypass plan is being pursued as a second resort, in case ITC fails to finalise the Diamond Harbour deal.
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The tobacco giant plans to buy the land as soon as it is able to clinch a deal with a private party. Incidentally, political leaders have chosen to remain non-committal about ITCs current crisis.
They refused to comment on whether it is liable to influence the state governments judgement - if and when the cigarette major makes a formal application for land acquisition.
West Bengal land and land reforms minister Surjya Kanta Mishra told Business Standard: I am not aware of any such application. I cannot comment on the matter.
Senior bureaucrats in the state government, however, doubt whether the factory will be set up in the wake of the recent controversies and charges of economic offences involving the company.
But the general opinion still appears to be that ITC will have no problems as long as it pays its land dues and pumps in funds into West Bengal - a state hungry for industrial investment.
Land for the companys hotel project at Calcutta, for which ITC had applied separately, has already been earmarked as it has paid the full amount.
ITC is, however, yet to take possession of this land.