Centre turns down proposal for setting up first jute park

In a blow to the jute industry, the Centre has turned down the proposal to set up the country's first jute park at Shaktigarh (West Bengal).

The proposed jute park project has been hanging fire for over two years with the erstwhile Jute Manufacturers' Development Council, now called the National Jute Board (NJB), raising technical blockades and the departments of panchayati raj and land reforms of the West Bengal government locking horns over the authorized delegation of the title of the land allotted for the project.

This jute park project has been rejected despite being granted in-principle clearance by the Union textiles ministry in 2008.

The first jute park in the country was to be developed by the Kajaria Group, one of the biggest groups in the sector. The Kajarias, the promoters of the project had requested the NJB to transfer the in-principle approval granted by the Union textiles ministry in the name of Shaktigarh Textiles Industries Limited (STIL) from the previous Shaktigarh Jute Parks Infrastructure Limited (SJPIL), a special purpose vehicle formed for the project.

The Kajarias had lined up an investment of around Rs 20 crore for setting up the jute park on 23 acres in Burdwan district. They were supposed to get a subsidy of Rs7.5 crore on the project cost.

The West Bengal panchayati raj department had leased the land to STIL, but change of title can only be done by the land reforms department. In a last ditch effort to save the project, the promoters of the project have sought the West Bengal Chief Minister’s intervention.

"We spent Rs 15crore to set up manufacturing facilities as we were given in-principle clearance in 2008. However, we suffered because of unforeseen delays. We are still optimistic that our venture will be sanctioned in the second phase”, says Srivatsa Kajaria, promoter of STIL.