JSW Steel is reportedly dragging its feet in signing a final development agreement with the state government for its proposed 10 million tonne (mn t) steel plant at Salboni, West Bengal.
Once the agreement is signed, the company will be given a definite timeframe to commission the plant in the stateÂ’s West Midnapore district, reports suggest.
Some reports suggest that the company may not have yet secured all the resources—for instance, iron ore—to start implementing the project, so it doesn’t immediately want to sign the final development agreement and commit a timeframe for commissioning of the factory.
West Bengal government has blamed the company for delaying the project despite giving all clearances and acquiring land. JSW Bengal Steel has secured the 4,300-acre plot on which it is to build the factory.
Six years ago, the project was conceived and the first development agreement signed between the steelmaker and the state. In the first phase, the firm proposes to build a 3 mn t steel plant at an investment of Rs 20,000 crore.
A revised agreement is necessary to “reflect the current situation which is different from six years ago when the project was conceived, reports quotes a top official of the state government as saying.
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