JSW Steel Ltd’s Rs 35,000-crore mega steel project at Shalboni in West Bengal’s Midnapore district will start commercial production from April 2011.
KOLKATA: JSW Steel Ltd’s Rs 35,000-crore mega steel project at Shalboni in West Bengal’s Midnapore district will start commercial production from April 2011, and the company has decided to allot free shares to those farmers whose land will be acquired for the project.
“The project will be christened JSW Bengal Steel Ltd and it will be ready for commercial production by April 2011,” JSW chairman Sajjan Jindal told reporters after a meeting with West Bengal chief minister Buddhadeb Bhattacharjee here on Thursday.
While JSW Steel will hold 89% in the new venture, the West Bengal Industrial Development Corporation will hold the remaining 11%.
In order to avoid any land acquisition controversies as in the case of Tata Motors’ Singur project, the company has decided to allot some free shares to those farmers whose land will be bought out directly by the company. This will be in addition to the compensation provided against the purchase of land and the shares allotted will be worth the compensation amount, Jindal said.
“Apart from that, one member from each of these families will be provided technical training, the expenses of which will be provided entirely by us. After training, they would be given jobs in the project,” Jindal announced.
He also said that the entire compensation will not be provided in cash to the farmers in order to ensure that they do not spend it instantly.
“Half the compensation amount will be provided in cash and the remaining 50% will be deposited as insurance at the district magistrate’s office,” Jindal said. Almost 751 families will be displaced by the project.
Speaking on the occasion, chief minister Buddhadeb Bhattacharjee said that residential houses will not be touched for the project. “The Jindals will buy directly from the farmers and the government-vested land would be handed over to them shortly, so that they can start work immediately,” he said.
Out of the 5,000 acres required for the project, the Jindals will have to buy out only 450 acres from private farmers, while the remaining will be government-vested land.
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