The Hindu : National : Jindal Bengal project to get a boost with Japanese tie-up

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Jindal Bengal project to get a boost with Japanese tie-up

Special Correspondent

Kolkata: After a considerable period , things have begun looking up for the Jindal Steel Works (JSW) Bengal project located at Salboni in Paschim Medinipur in the heart of the State’s Maoist stronghold of Lalgarh. It is while returning from the launch of this project on November 2, 2008 that Chief Minister Buddhadeb Bhattacharjee faced an attempt on his life when an IED blast targeted his convoy.

Mr. Bhattacharjee escaped unhurt, but the police action that followed is believed to have catalysed the entry of the ultra-leftists into the State in a big way.

The O. P. Jindal Group, led by JSW Steel vice-chairman and managing director Sajjan Jindal, stayed on with the project ignoring the gunfight raging 50 km away in Lalgarh since the commencement of joint operations by security forces. Now, the project has received a booster shot with JFE Steel Corporation, Japan’s second largest steel company, striking a strategic partnership with JSW that also brings benefits for JSW Bengal.

JSW Bengal chief Biswadip Gupta, who dug in his heels through the period of turmoil — due to the economic downturn and the unrest around the project area — visited Mr. Bhattacharjee on Friday to apprise him of the positive developments.

“The State government is our 11 per cent equity partner, so I had come to apprise the Chief Minister about Thursday’s developments,” he told The Hindu at the secretariat. “He was happy,” Mr. Gupta said.

Social responsibility

At a time when agitation over land has scuppered many an industrial project, JSW Bengal possesses 4,500 acres. The promoters also continued with their Corporate Social Responsibility work like sending medical assistance to 10 villages in the area.

Mr. Gupta and his team had managed to keep the work going on erecting a boundary wall around the land, for some time after the agitation by the local tribals on allegations of police excesses following the attack on Mr. Bhattacharjee’s convoy. But the intensification of the economic downturn sent the promoters into a tizzy bringing things to a halt. Now, work on raising the 38-km long boundary wall has resumed.

Following JSW’s recent decision to implement the project from the power plant end, it has been decided that work would start on the first phase (800 MW) of the power plant from April. Splitting the project also made it easier to get institutional finance.

With the tie up with the Japanese steel company which may bring some equity support for the West Bengal project, it is possible to start work on the power and the steel project simultaneously. This involves an investment of Rs. 10,000 crore in the initial phase.

Alongside, work on the refurbishment of the Industrial Training Insitute at Jhargram which was taken over by the Jindals in 2007 is getting completed.

The 10-million-ton integrated steel and power project entailing an investment of Rs. 15,000 crores was seen as a model where stakeholders were to be offered training for jobs while equity shares would be offered once the new company tapped the capital market.

Of the 4,500 acres acquired for the project, 500 acres was acquired directly by the Jindals and the rest by government agencies.

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