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INDIA
BUSINESS WORLD -
NOVEMBER 2005
THE MONTH THAT WAS
JINDAL TO SET UP $8B STEEL PLANT IN JHARKHAND
JINDAL South West
Steel (JSW) has proposed to set up a Rs 35,000-crore ($8 billion)
integrated steel plant at Jharkhand. The flagship company
of the O P Jindal group is planning to set up the greenfield
plant with 10 million tonnes of capacity located near Hesalong
in Saraikela Kharsawan.
A memorandum of
understanding(MoU) was signed here between the chief minister
Arjun Munda and Sajjan Jindal, vice-chairman and managing
director of JSW. As per the MoU the government has promised
500 million tonnes of iron ore for 30 years to JSW for captive
use. In addition, the government has promised an additional
20-year mining lease for 300 million tonnes of iron ore to
the company.
The project will
be broken down into two stages with a six - million tonne
steel plant set up in the first stage. The capacity would
be enhanced by another four-million-tonne per annum (MTPA)
eventually. The project is expected to be completed in seven
years from the date of getting all the clearances.
Speaking to the
media, Mr Jindal, said: "Given the availability of both
coal and iron ore in close proximity, we chose to set up our
plant in Jharkhand." JSW had also considered West Bengal
for its plant but decided against it after doing a comparative
study of costs. With this expansion, JSW's total steel capacity
would cumulate to 17 MTPA. It currently has a capacity of
2.5 MTPA at its plant at Bellary in Karnataka which is being
enhanced to four MTPA by March '06.
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