JSW Steel to start Salboni project by fiscal-end

July 27th, 2010 - 5:53 pm ICT by IANS  

Kolkata, July 27 (IANS) JSW Steel would start construction of its 10-million-tonne Salboni plant in West Bengal before the end of the current fiscal (2010-11), a top company official said Tuesday.
The company would be pumping in Rs.35,000-crore for the project in West Midnapur district.

“The work of boundary wall has already started. We are doing the designing of the steel plant now. Construction of the plant would start before end of this fiscal,” Sajjan Jindal, managing director, told reporters here through a video-conference from Mumbai.

He said three years would be required to complete the construction work of the plant from the day of ground breaking.

Asked about the financial closure of the project, Jindal said: “We have not yet concluded financial closure for the Salboni project.”

The company is now designing the steel plant, after which estimation of project cost would be done and then financial closure would be concluded.

“The first phase will be 3 million tonne with a 300 MW power project, which will be used for captive purpose.”

JSW Bengal Steel is constructing the West Bengal project. It is promoted by JSW Steel Ltd, which holds 89 percent of the equity capital. The state government owns the balance 11 percent.

JSW Steel had joined hands with Japan’s second largest steelmaker JFE Holdings in November 2009 to set up a greenfield project in the state.

Asked about JFE’s plans, he said: “We haven’t discussed the West Bengal project yet. But Bengal project is one of the most important projects that we are going discuss with JFE.”

He, however, said Maoists in that zone are not causing any disturbance to the project work though the security of the people working over there would always be a concern.

“I don’t think Maoist activities are hurting the steel project, Though concern for safety of the people who are working at the spot will always be there,” Jindal said.

“The state government is very keen that this project happens. This is the largest investment in the manufacturing sector in the state. The state government is providing all sorts of support to us.”

West Midnapore in recent times has become hotbed of Maoist activities in the state.

In November 2008, while returning after the foundation stone laying ceremony of the Salboni project, a landmine exploded targeting the convoy of Buddhadeb Bhattacharjee and two Union ministers.

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