Bharat Forge to set up Rs.6,500 crore steel unit in West Bengal

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"The deal has been finalized with the Kalyani Steel, West Bengal Industrial Development Corporation (WBIDC) and West Bengal Mineral Development and Training Corp (WBMDTC) with an investment of Rs 6500 crore," Kalyani Steel Director Amit B. Kalyani announced.

Explaining the investment break-up, he said, "About Rs.4500 crore would be invested for the steel factory and the rest for the power plant."

The steel plant will have a capacity of one million tonne and the power plant is planned for 500 mw, along with downstream operations. The plant will essentially produce long products. In addition, a separate unit will be set up for the downstream project.

The high-end manufacturing hub will cater to Kalyani Steel's international clients in the automotive, engineering and infrastructure sectors as well as to Bharat Forge.

Kalyani also said that the group deliberated with the Bengal investment issue for a year and a half, before reaching an understanding on the nature of the project.

"We will conduct a study in both the areas keeping in mind all aspects to develop industries there. The detailed project report (DPR) is expected to be completed within 12 months from now as we will definitely work within a shorter timeframe," Kalyani said, adding that the project was likely to be completed within 36-45 months from the day construction starts.

He said the total land required for the project has not been finalized yet and it will only be confirmed after the DPR is received. Bharat Forge group is also planning to locate its eastern regional headquarters in Kolkata and efforts are now on to find about four acres close to the city.

Meanwhile, Nirupam Sen, West Bengal minister for commerce and industry, said, "the state government has already short-listed two areas: one at Shalboni in West Midnapore district, near the proposed steel plant by Jindal Group, and the other at Burdwan district's industrial township of Durgapur."

The minister said that several companies were looking to invest in West Bengal as they have realized that a lot of investment is happening in the metals, metallurgy and automobile space in the state and this latest association with the Kalyani group will help the state government attract other investors as well.

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