JSW Bengal Steel, which is setting up a 10 million tonne plant at Salboni in West Bengal, is rushing to get its land deed in order, after the Mamata Banerjee government decided to vest a portion of the land acquired by the company, citing land ceiling stipulations.
The company will now have to apply for a 99-year lease on a ‘long term settlement basis’ for 270 acres which is already registered in its name. JSW will have to pay administrative charges of 2% of the cost of land for this. The process of vesting the land is expected to take a month. Following this, JSW expects to get the crucial land deed which will be linked to the project’s financial closure.
“We also have to acquire an additional 49 acres for access to road highway and railway linkages for which we have decided to immediately apply for state government approval,” said joint managing director Biswadip Gupta.
Earlier this year, the previous regime in the state had taken a Cabinet decision to lease back the land to the company. However, the decision was not implemented.
JSW, which hopes to start work on the first phase of the project in October, is planning to invest Rs 20,000 crore in the initial phase to set up three million tonne of steel-making capacity along with a 300 mw power plant. JSW had received over 4,000 acres or a substantial portion of its over 4,300 acres for the project on lease from the state government, while it acquired 294 acres on its own, which was pending approval from the land reforms department.