Published On:February 22 2008
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Bharat Forge to set up steel plant in Bengal
Kolkata: Bharat Forge, flagship of the Kalyani Group of companies, today signed a MoU with the West Bengal Government to set up a 1-million-tonne per annum steel plant in the State. The company has proposed to invest Rs 6,500 crore through Kalyani Steel, the Group company.
The project involves a captive Rs 2,000-crore (out of the total investment) 500-MW power plant besides a downstream unit. The balance will go into building of the steel unit, Bharat Forge’s Executive Director, Mr Amit B. Kalyani, said here today.
Though land for the project has not yet been finalised, the company is looking at either Durgapur or areas adjacent to Salboni, where JSW Steel’s proposed steel plant is coming up, as likely locations, he added.
The project is expected to provide direct employment to about 3,000 people and indirect jobs to many more, the State Industry and Commerce Minister, Mr Nirupam Sen, said at an interactive session at the WBIDC office.
The MoU was signed between the Bharat Forge and the two Government agencies – WBIDC and West Bengal Mineral Development and Trading Corporation in the presence of the Minister.
“We were not present in this part of the country till now and have been negotiating with the State Government for the last one and half years for this project. Once the location for the project is identified, we will work towards a speedy realisation,” Mr Kalyani told reporters. The company is now awaiting DPRs, expected to be ready in the next 12 months. The project is expected to go on stream within three years from zero date, Mr Kalyani clarified.
The plant will produce steel bars, besides other steel components for supply to industries like shipbuilding, power plants, railways, automobiles, cement and mining in the eastern part of the country.
“We will also examine export possibilities at a later stage.” While coal will be arranged from within the State, the company will make ‘separate arrangements’ for iron ore. A forging unit will also come up later on, he added.
Bharat Forge is also in talks with the State to act as ‘co-developers’ in creating a manufacturing cluster for the steel industry in the State. “Other companies, including ancillary and component units can build their factories around our plant and make use of the infrastructure facilities through supply chain linkages,” he said.