JSW Steel today expressed hopes of achieving financial closure and start construction of the Rs 35,000-crore integrated steel plant at Salboni in West Bengal soon after the festive season in October.

In the initial phase, the company plans to build a three-million-tonne steel plan coupled with 300-MW captive power plant.

Talking to Business Line after a meeting with the State Commerce and Industry Minister, Mr Partha Chatterjee, Mr Biswadip Gupta, CEO and Joint MD of JSW Bengal Steel, said that the State land and land reforms department has called a hearing to resolve the “technical complications” with regard to possession of a small fraction of land directly acquired by the company.

According to him, JSW directly acquired 296.6 acres out of a project area of 4,334 acres but failed to notify it under section of 14Y 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 approval.

“Though the land is registered in our favour, the possession could not be regularised due to a procedural error. The Land and Land Reforms Commissioner, Mr R.D. Meena, who was present at today's meeting, readily called a hearing on the issue on August 10 with an aim to regularise the possession,” Mr Gupta said.

According to the company, the land in question is spread in smaller fractions across the project area; and unless the possession of the same regularised the company could not start construction.

“We have already obtained all regulatory approvals as well as captive mines. Negotiation with banks and financial institutions are over. Once the land issue is resolved, we will immediately achieve financial closure for the project,” Mr Gupta added.

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