Jindal status report sought

Calcutta, July 26: The Bengal government has sought a status report from the Jindals on their proposed steel plant at Salboni in West Midnapore.

“We have asked them to submit a status report,” state industries minister Partha Chatterjee said. “We want to know how they have utilised the land so far.”

According to government sources, chief minister Mamata Banerjee is against land holdings lying unutilised with industrial houses.

Mamata had raised the issue during her interaction with industrialists on June 18, referring to the Salboni land. “Land is there with certain industrial groups but they are not doing anything. Jindals in Salboni...” Mamata had said, adding that she was aware that the Jindals had asked for more time.

JSW Bengal Steel, a subsidiary of JSW Steel, had signed an agreement with the Buddhadeb Bhattacharjee-led Left Front government in January 2007, promising the biggest investment — Rs 35,000 crore over 10 years — to the state yet.

However, the deadline was shifted several times because of Maoist insurgency and the economic crisis of 2008. On November 2, 2008, Bhattacharjee and Sajjan Jindal, the vice-chairman of JSW Group, had narrowly escaped a bomb attack by the Maoists.

The latest deadline of the group is to commence production from 2014. “We have commenced work on our proposed Bengal project for the first phase for a 3-million-tonne steel plant and a 300MW captive power plant. We expect to complete the first phase in three years,” Jindal told the JSW annual general meeting in Mumbai yesterday.

The sources said the Jindals had sought a meeting with the Bengal chief minister but none has taken place so far.

Chatterjee later told The Telegraph that he was in touch with the Jindals. “The company has been slow to start. They should have done more. But I am hopeful that they will fulfil the commitment. Jindal is a nice gentleman and we have no issues,” he said.

The Jindals are yet to sign a lease deed agreement for the 4,334 acres it holds in Salboni. The company is awaiting clearance from the land department to hold land in excess of the ceiling under law.

“Our development agreement says that the company will start production three years after it gets the land. What we have today is permissive possession of land. But it will be difficult to get loan from banks in the absence of a lease deed agreement,” said Biswadip Gupta, the CEO of JSW Bengal Steel.

Gupta said the boundary wall had been erected and work was going on at the Ichhapur coal mine, which will provide fuel for the project.