Kolkata: The Rs1,111-crore Kalyani Steels, a Baba Kalyani group company is setting up a one-million tonne speciality steel plant and a 500 MW power plant at an investment of Rs6,500 crore in West Bengal.
Amit B Kalyani executive director Bharat Forge signed a memorandum of agreement with West Bengal Industrial Development Corporation and West Bengal Mineral Development Corporation for setting up the steel and power projects.
Bharat Forge also plans to set up a high-end engineering manufacturing cluster in West Bengal in which a number of units along with Bharat Forge will invest. The group also has plans to set up a similar cluster in Pune.
Kalyani told the press that the company had a choice of two plots of land; one at West Midnapore near Salboni and the other at Durgapur. The company would shortly identify the land. Simultaneously, the company would start carrying out the detailed project report, which would take about a year to finalise.
The project is scheduled to go on stream within 36 to 45 months after the detailed project report has been finalised. The steel unit will produce long products.
Kalyani Steels also operates a 4-lakh tonne per annum (tpa) capacity steel plant at Karnataka and 2.7 lakh tpa plant in Andhra Pradesh.
The forging industry in India is the primary market for the company's products. The commercial vehicles, two-wheelers, diesel engines, bearings, tractors, turbines and rail industry are also a substantial part of the company's clientele. The state government had made a strong pitch to bring Baba Kalyani group to the state.
Kalyani said: ''Bharat Forge is focusing more on non-automotive components to grow its business. The company will now focus more on marine, energy, aerospace and capital goods.
Kalyani said the east has immense potential for growth and a number of MNCs are keen to invest here.
State government officials said, ''The steel and power plants will generate employment for 3,000 people.''
The Baba Kalyani group had revenues of close to $1.2-billion last fiscal.