Bhushan Steel to invest Rs8,800 cr in West Bengal

Bhushan Steel to invest Rs8,800 cr in West Bengal

The West Bengal government signed an agreement with Bhushan Steel Ltd to set up an integrated facility that will produce 2 million tonnes of steel every year and also have a 1000MW captive thermal (coal-fired) power plant. A second project, which will annually produce half-a-million tonne of cold-rolled and galvanized steel used in automobile bodies, was also inked. The total investment of the two projects is estimated at Rs8,800 crore.

The company hopes to get the land required for its projects in West Bengal in the next one year and has earmarked another four years for construction of the plants. The company expects to commission its West Bengal projects in 2012.

The steel plant will be located at Salanpur, 250km from Kolkata, in Burdwan district. The land required for the project, including the power plant, is 2,500 acres. The cold-rolled and galvanizing plant will come up in North 24 Parganas, adjacent to Kolkata. It will come up on 150 acres. While the site at Salanpur has been identified, the hunt for location is still on in North 24 Parganas.

“We have about 150 acres of land vested with us at Salanpur and remaining will have to be acquired," state industries minister Nirupam Sen said. The land acquisition will be done by the West Bengal Industrial Development Corporation and leased out to Bhushan Steel for a long-term period. He does not see the acquisition becoming a difficult affair at Salanpur, as the land there is largely non-agricultural. The land is rich in mineral with a lot of coal mines, Sen said.