Jindal converts proposed Salboni plant in West Bengal to SEZ status

August 31, 2008

This is very recent news, and not very widely known yet. The Jindal group, which is planning to set up a mega steel plant in Salboni in West Bengal, had applied for SEZ status for their plant in September 2007. The SEZ status was granted by the government of West Bengal on August 28, 2008. This might become a new, and disturbing pattern, as every industry which will be planned to be established will apply for SEZ status, with the accompanying suspension of labour laws, huge tax rebates etc. Things are moving fast, and quietly. The SEZ-Birodhi Prachar Mancha, a SEZ watchdog and awareness forum in Kolkata, is also going to move against this. – Partho Sarathi Roy, Sanhati

WB approves SEZ status for JSW Bengal plant – August 28 2008, The Financial Times

The West Bengal government on Thursday granted SEZ status to JSW Bengal Steel promoted by the Sajjan Jindal group.

Industry Secretary Sabyasachi Sen told reporters in Kolkata that the SEZ status was approved at meeting of the state cabinet.

The company had sought SEZ status for making the plant viable since the project would involve import of iron ore from Chile and coal from South Africa or any other African nation, said Sen.

He said that since the plant would depend on import of key raw materials, the company would have to pay various duties.

The state government had stipulated that the company would have to supply its products in the local market since any company enjoying SEZ status had the right to export all its products, subject to a minimum of 30 per cent.

Sen said that the state government would soon forward the cabinet’s decision to the Centre.

The West Bengal government would also enter into a pact with the Jindals for setting up an industry park near the plant site at Salboni.

The plant would come up over an area of 5,000 acres, of which 4,500 acres would be given by the government and the remaining 500 acres would be bought by the company.

*************************************

JSW Bengal Steel to seek SEZ status for Salboni plant – September 2007
PTI

Kolkata: Sajjan Jindal group-promoted JSW Bengal Steel will seek special economic zone (SEZ) status for its 5,000-acre steel plant, coming up at Salboni in West Bengal.

In-house discussions were on for seeking SEZ status for the plant with an annual production capacity of 3 million tonnes, JSW Bengal Steel managing director, Biswadip Gupta, told PTI.

Initially, the installed capacity of the plant would be 3 million tonnes a year, involving a cost of Rs10,000 crore. Later, the it would be ramped up to 10 million tonnes at an outlay of Rs35,000 crore, he said.

Gupta said 35% of the products would be exported. The foundation stone of the plant was expected to be laid in November.
Ninety per cent of the land was being given by the government, the balance was being purchased directly from the locals.