JSW Bengal Steel project cost may come down

The project cost of JSW Bengal Steel project at Salboni in West Bengal may drop in view of the recession which has gripped the steel industry worldwide.     

A JSW Bengal Steel official told PTI that the cost of supplies of equipment, of which steel is a major component, has come down.      This, according to him, would naturally bring down the overall cost of the Rs 10,000-crore project slated to come up at Salboni.      "However, we are sticking to the original project cost figure," the official said.     

Asked about the extent by which the cost would come down, the official said that it was being worked out.The official said that due to the recession, the cost of steel which was $1,200 per tonne a year ago, had come down to USD 450 per tonne at the moment.     

This meant that the cost of supplies of equipment would come down.  As per the original plan, JSW Bengal was to put up a three-million-tonne steel plant in the first phase and a 300-MW power plant in the state.