JSW steel plant in Bengal is not stalled, says industry minister

Even as Sajjan Jindal, the chairman and managing director of JSW, said that the steel major has put on hold plans to set up its 10 million tonnes steel plant in West Bengal, Industry Minister Partha Chatterjee on Sunday claimed that the project has not been stalled.

“The state government along with JSW management are working together on our demand to the Centre for a national iron ore policy for an uniform supply of the ore among all states to make such projects smooth and more viable,” Mr Chatterjee said.

[caption id=“attachment_735855” align=“alignleft” width=“380”] JSW is working with the Centre and state government to secure iron ore mining lease, he said, adding, long-term visibility of iron ore is required to begin construction of the plant. Reuters[/caption]

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His comments came in the wake of report that the JSW put on hold plans as it has not been able to secure long-term iron ore supplies for the Rs. 35,000 crore project, “Chief Minister Mamata Banerjee and I myself have already written to the Centre demanding a national iron ore policy for its uniform distribution among the states. Hope the matter will be resolved soon,” Mr Chatterjee said.

Stating that some news channels were projecting as if industries were deserting the state, Mr Chatterjee said “This is nothing but to malign the chief minister and campaign against her attempt to expedite industrialisation process.”

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Problems following wrong distribution of iron ore in the absence of any national policy on the issue is a barrier since the time of the Left Front government, but the erstwhile regime did nothing," he regretted.

“When we have taken some positive steps and trying hard to resolve the issue to make such projects more viable, the leftists are trying to malign our image,” Mr Chatterjee said.

Mr Jindal had earlier said, “The plan to set up JSW steel plant in the state is stalled right now, it’s on hold. Unless we are going to fix the iron ore matter, unless we have the visibility of iron ore, we cannot move ahead. It’s on hold.”

When asked about any timeline for the project, he said, “Nothing (is) in my control. The project is stalled at the moment.”

JSW is working with the Centre and state government to secure iron ore mining lease, he said, adding, long-term visibility of iron ore is required to begin construction of the plant.

The West Bengal project of JSW, first announced in 2007, has been getting delayed for various reasons. This included a land acquisition row with the state government after Mamata Banerjee-led government took charge in 2011. The issue has now been resolved and land acquisition has been completed.

PTI