A day after Chief Minister Mamata Banerjee issued an ultimatum to JSW Steel on its Salboni project, the company said that it is working with the West Bengal government to resolve the issues that are delaying the project.
In a statement issued on Tuesday, the company said, “We are committed to Bengal project and have spent over Rs. 600 crore.”
Stating that problems over iron ore, which is a critical input for steel-making, were coming in the way of ‘active implementation of the project’, the statement said that the State government is seized of the matter and JSW Steel is working with the government to resolve this issue.
“We are confident that we along with the Bengal government will find a solution to the problems to enable us to take up the project implementation expeditiously,” the company said
JSW Steel said that iron ore is not made available to steel companies which are set up after liberalisation for value addition within India.
Instead, India has granted mining concessions to merchant miners encouraging export of iron ore and import of steel. Compounding the problem, iron ore-bearing States are now restraining the movement of iron ore to other States threatening the survival of steel companies in non-iron ore-bearing States.
Long-term supplyA JSW Steel spokesperson said, “In these circumstances, JSW Steel requested the West Bengal government to facilitate long-term sustainable supply of iron ore to take up active implementation of the Bengal steel project.” Ms. Banerjee’s comments were made on Monday at a public meeting in Salboni in Jangalmahal.
Monthly compensationWhile expressing concern over the inordinate delay in implementing the JSW Bengal project (for which the company has possession of 4,300 acres in Salboni), the Chief Minister said that the company cannot sit on such a large land parcel. She also asked the company to make monthly compensation to the 400-odd land losers.
JSW Steel was silent on this issue in its official response.
She made these statements after inaugurating a Rs. 615-crore cement-making unit nearby which was conceived in the hope of sourcing its input from JSW plant. It has now made alternative arrangements.
