New Delhi, 8 July
Reaffirming plans to go ahead with the Rs 35,000 crore West Bengal greenfield project, JSW Steel has said it hopes to speed up work on the plant after securing iron ore supply.
“Your company is committed to the 10 million tons per annum (mtpa) integrated steel project in West Bengal and have made significant progress in securing the requisite regulatory clearances during the year,” company chairman and managing director Mr Sajjan Jindal said in a letter to shareholders.
The company has already applied for a prospecting licence through West Bengal Mineral Development & Trading Corporation (WBMDTC) for an iron ore concession in Jharkhand.
“Simultaneously, we are also working towards securing long-term iron ore supply arrangement from third parties. Once iron ore sourcing is tied-up, project work will be further expedited,” he added.
The ministry of environment and forest (MoEF) has already granted the first stage forest clearance for iron and manganese ore mining project in Ankua and the Rohne coking coal block in Jharkhand.
About the West Bengal project, Mr Jindal had in April this year said: “Unless we have the visibility of iron ore… we cannot move ahead.”
However, in the latest annual report of the company, he has expressed satisfaction with the level of progress made towards setting up of the plant at Salboni in West Bengal’s West Midnapur district.
According to the original plan, JSW’s West Bengal project was envisaged to have a 10 million tons steel plant along with a 1,600 MW captive power plant at a total cost of Rs 35,000 crore that requires about 4,300 acres of land.
However, it has received approval from the ministry of environment and forest and Pollution Control Board for setting up a 3 mtpa steel plant and associated power plant.
The first phase also includes development of 2.4 mtpa in Kulti Sitarampur coal blocks and 2.6 MTPA Ichhapur coal block, through the company’s wholly owned subsidiaries. The first phase may require an investment of Rs 20,000 crore.