West Bengal emerges favourite destination for steel projects
Tuesday, 9 October 2007
KOLKATA, Oct 8 (PTI): Notwithstanding the non- availability of iron-ore in te state, West Bengal has emerged as one of the favourite destinations for setting up steel projects with investments totalling Rs.700 billion lined up in the sector.
Some of the big players investing in this sector includes JSW Steel, Steel Authority of India Ltd, Bhusan Steel, Jai Balaji group and Videocon group.
Admitting that iron ore was a problem since West Bengal has no reserve, Chief Minister Buddhadeb Bhattacharjee has demanded a national policy on it.
"In the absence of a national policy it will be difficult to source iron ore for the upcoming steel projects in the state," Bhattacharjee said here last week during the signing of the agreement for Jai Balaji group's 5 million tonne (mt) plant.
He had said an investment of over Rs.700 billion in the sector was committed by different companies.
Industry department sources said major investment in the steel sector was in line with the state government's objective of positioning Bengal as a hub for steel-making.
SAIL has iron ore mines in neighbouring Jharkhand and Orissa which would supply ore to its IISCO steel plant (ISP), undergroing massive modernisation and expansion at a cost of Rs.100 billion.
The steel major would spend another Rs.65 billion to expand capacity and upgrade facility at Durgapur Steel Plant and Rs.5 billion in the alloy steels plant.
Other players would also have to depend on iron ore fines and ore from neighbouring Jharkhand and Orissa to run their steel plants.
"We will source iron ore fines from Orissa and talks are on with Orissa Mineral Development Corporation and some private companies," Jai Balaji group Chairman and Managing Director Aditya Jajodia said here.
"The company will put up sinter and pellet plants to use fines for its 5-mt steel plant coming up in Purulia at a cost of Rs.160 billion along with a cement and a captive power unit," he added.
Videocon group which was also entering the steel sector with the decision to put up a 3-mt plant at Barabani in Asansol with an investment of Rs.150 billion, would source iron ore from neighbouring states.
"The company would bring iron ore from neighbouring states to run the steel plant," Videocon group Chairman Venugopal Dhoot had said here last week.
Sajjan Jindal-promoted JSW Steel which was setting up a mega steel plant of 10 million tonne capacity in phases with investment of Rs.350 billion, was also depending on fines and ores from Orissa and Jharkhand.
The first phase of the project would come up with 3 mt capacity at an investment of Rs.100 billion.
The sources said it was in dialogue with some companies in Orissa for the supply of iron ore and fines.
Bhusan steel was putting up a 2 mt plant at Salanpur in Burdwan district at a cost of Rs.80 billion.
Some of the big players investing in this sector includes JSW Steel, Steel Authority of India Ltd, Bhusan Steel, Jai Balaji group and Videocon group.
Admitting that iron ore was a problem since West Bengal has no reserve, Chief Minister Buddhadeb Bhattacharjee has demanded a national policy on it.
"In the absence of a national policy it will be difficult to source iron ore for the upcoming steel projects in the state," Bhattacharjee said here last week during the signing of the agreement for Jai Balaji group's 5 million tonne (mt) plant.
He had said an investment of over Rs.700 billion in the sector was committed by different companies.
Industry department sources said major investment in the steel sector was in line with the state government's objective of positioning Bengal as a hub for steel-making.
SAIL has iron ore mines in neighbouring Jharkhand and Orissa which would supply ore to its IISCO steel plant (ISP), undergroing massive modernisation and expansion at a cost of Rs.100 billion.
The steel major would spend another Rs.65 billion to expand capacity and upgrade facility at Durgapur Steel Plant and Rs.5 billion in the alloy steels plant.
Other players would also have to depend on iron ore fines and ore from neighbouring Jharkhand and Orissa to run their steel plants.
"We will source iron ore fines from Orissa and talks are on with Orissa Mineral Development Corporation and some private companies," Jai Balaji group Chairman and Managing Director Aditya Jajodia said here.
"The company will put up sinter and pellet plants to use fines for its 5-mt steel plant coming up in Purulia at a cost of Rs.160 billion along with a cement and a captive power unit," he added.
Videocon group which was also entering the steel sector with the decision to put up a 3-mt plant at Barabani in Asansol with an investment of Rs.150 billion, would source iron ore from neighbouring states.
"The company would bring iron ore from neighbouring states to run the steel plant," Videocon group Chairman Venugopal Dhoot had said here last week.
Sajjan Jindal-promoted JSW Steel which was setting up a mega steel plant of 10 million tonne capacity in phases with investment of Rs.350 billion, was also depending on fines and ores from Orissa and Jharkhand.
The first phase of the project would come up with 3 mt capacity at an investment of Rs.100 billion.
The sources said it was in dialogue with some companies in Orissa for the supply of iron ore and fines.
Bhusan steel was putting up a 2 mt plant at Salanpur in Burdwan district at a cost of Rs.80 billion.