OP Jindal group to set up Rs12,000 crore steel plant
By Our Corporate Bureau | 05 Nov 2004
Kolkata: The O P Jindal group today announced plans to set up an integrated steel plant in West Bengal with a 5-million-tonne capacity with an investment of around Rs12,000 crore.
The steel plant would be commissioned in two phases with a capacity of 2.5 million tonnes in each phase.
Talking to the press on the sidelines of Metals 2004 organised by the Bengal Chamber of Commerce and Industry , Sajjan Jindal, MD, Jindal Vijaynagar Steel Ltd (JVSL) said the project would be commissioned in 36-48 months from date zero.
The steel plant would be of the same size as the JVSL plant and would be close to Assansol. The investment would be made under any of the Jindal group companies. The plant would create 10,000 direct jobs and another 10,000 jobs indirectly.
According to the blueprint being chalked out, in the first phase the plant would produce semi-finished steel and, in the second phase, flat and long products. Jindal said the plant would use the blast furnace route for the project.
The plant would be funded through a mix of debt and equity in the ratio of 1:1, Jindal said.
Elaborating on the reasons behind setting up the plant in West Bengal, Jindal said one of the main factors, which worked in favour of the state, was the proximity to Haldia and Paradip ports.
"We can bring in raw materials easily and export finished products," he pointed out. Moreover, the other inherent advantage of the state was its skilled labour. Jindal said its plants elsewhere in the country had manpower from West Bengal.
However, since one of the riders in the project was iron ore and coal linkages, the project would be finalised on the basis of assurances on raw materials from the Jharkhand or Orissa government. Jindal said this was conveyed to chief minister Buddhadev Bhattacharya, who would take up the issue with the centre.
The issue had become critical as the policy pursued by the state was that access to raw material would be given to only companies setting up plants in their states. Jindal said a meeting was scheduled with state commerce and industry minister Nirupam Sen, to work a suitable solution.
He, however, clarified that the company would continue to pursue the matter with the state government.
He said a policy for inter-state collaboration in the regard would have to be formulated at the national level.