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This is an archive article published on October 30, 2011

Govt,Jindal fail to resolve outstanding issues

While the Jindal Steel Group and the West Bengal Government had earlier decided to resolve the outstanding issues before the Puja festive season so that work on the Rs 35,000 crore integrated steel project at Salboni could start

While the Jindal Steel Group and the West Bengal Government had earlier decided to resolve the outstanding issues before the Puja festive season so that work on the Rs 35,000 crore integrated steel project at Salboni could start,a review meeting on Friday showed not much progress has been made.

The West Bengal Chief Minister Mamata Banerjee has assured that her government would ensure speedy clearance of all the outstanding issues so that Jindals could start work. But during the day’s review meeting with Commerce and Industry Minister Partha Chatterjee,none of the major pending issues could be resolved.

According to industry sources,during the day-long meting,the JSW group was asked to give certain clarifications on their project plans. The outstanding issues related to mutation and registration of land,controversy over classification of land,clearance certificate for water agreement for the steel plant,mining facility and logistics. A fresh issue has arisen out of the classification of land and a clearance from the Union Ministry of Forests and Environment was reportedly pending since the land earmarked for the plant allegedly included forest land,as well.

However,the state government on Saturday did not raise the issues in the meeting. Biswadip Gupta,CEO and joint MD of JSW Bengal,said,“The state government today asked for some clarification regarding our corporate social responsibility agreement and the number of jobs we can give to the villagers in the area. We have already submitted our documents in the respective departments of the state government. Today we explained our plans to the state Industry minister.”

Significantly,if the JSW project is implemented,it will be the first major investment under the Mamata Banerjee-led government in the state. In the first phase,the company plans to build a 3 million tonne steel plant coupled with 300-MW captive power plant at an investment of Rs 20,000 crore. The project came under question from the state government following problem relating to acquisition of land above a specified ceiling.

According to JSW officials,the company had directly acquired 296.6 acres out of a project area of 4,334 acres; but failed to notify it under certain sections of the Land Reforms Act,1955. The Act imposes restrictions on holding more than 24 acres in rural Bengal. Industry is exempted from the ceiling,subject to an approval of the state government. The company,however,is in possession of the remaining land.

Industry Minister Partha Chatterjee,Industry Secretary Dipankar Mukherjee and WBIDC managing director Nandini Chakraborty met JSW officials and urged them to plug all information gaps between the company and the government. “We told them to provide all the information to the government so that the progress of the project is expedited. We have asked the group to stand by all their commitments they made to the state while commissioning the project,” said the Industry Minister.

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