JSW Steel puts West Bengal steel plant ‘on hold’
1 min read . Updated: 02 Dec 2014, 06:08 PM IST
PremiumThe company cited a Supreme Court verdict in September that scrapped most coal extraction permits granted to companies over the last two decades
Mumbai: JSW Steel Ltd said on Tuesday it has “put on hold" building a steel plant in West Bengal due to uncertainty in sourcing key raw materials such as iron ore and coal.
The nation’s third largest steel maker had planned to build a 10 million tonnes a year steel plant at an investment of ₹ 35,000 crore.
The company cited a Supreme Court verdict in September that scrapped most coal extraction permits granted to companies over the last two decades, after ruling the allocation process as arbitrary and illegal.
“Besides iron ore linkage for this project, the recent cancellation of coal mining concessions has added further uncertainty," JSW said in a stock exchange filing.
Another steel maker, Jindal Steel and Power Ltd, last month told Reuters it had shelved a $10 billion coal-to-diesel project after the court decision to scrap coalfields.
