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| Tata Metaliks to reconsider decision on expansion project in Bengal |
| BS Reporter / Kolkata Apr 09, 2009, 00:35 IST |
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At the behest of the West Bengal government, Tata Metaliks will reconsider its decision to scrap its expansion project in the state.
Harsh K Jha, managing director, Tata Metaliks said, the government of West Bengal had requested the company to reconsider its decision and the company would do so. “This will be taken up at the forthcoming board meeting of Tata Metaliks and the decision will be conveyed to the state government,” he said. Exactly a month ago, the company had announced its decision to scrap the project in West Bengal.
The main issue, apart from the inordinate delay was the pricing of the land. The price of land in Kharagpur had more than doubled since the West Bengal Industrial Development Corporation (WBIDC) started acquiring land for the project three years back.
Three years back the price was Rs 3.5-4.5 lakh an acre while it was now at Rs 8-9.5 lakh an acre. The company was asked to pay the higher price.
Subrata Gupta, managing director, WBIDC said, discussion had been held with the company and was awaiting a response from them. The price was subject to negotiation.
The company was likely to ask for a firm commitment from the government on the timeline and price. Of the total requirement of 350 acres, WBIDC had already acquired more than 200 acres. The plot was adjacent to Tata Metaliks’ existing facility at Kharagpur.
The Bengal project, as originally conceived, was a 0.5 million ton billet making plant and the investment was Rs 700-800 crore.
West Bengal chief minister, Buddhadeb Bhattacharjee, had promised Tata Metaliks on February 26, 2005, that the state would allocate land on “priority basis”. The company applied for land on March 15, 2005.
Meanwhile, Tata Metaliks has scaled up its Karnataka project.
Initially the company had sought 500 acres, but the requirement had been increased to 900 acres. However, the project was conditional.
Tata Metaliks would start work on the project only if the Karnataka government recommends iron ore mines.
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