Calcutta, May 11: The West Bengal Industrial Development Corporation could buy land directly from farmers for a Rs 8,800-crore steel plant, industries minister Nirupam Sen said today.

Bhushan Steel requires 2,500 acres in Burdwan for a two million-tonne plant, for which it signed an agreement with the government today.

The direct-purchase possibility leaves room for the state to use the Land Acquisition Act, which gives it the power to acquire plots ignoring owners’ protests.

“We are open to acquisition through the act and direct purchase by the WBIDC,” Sen said after the deal for the steel unit and a 1,000-mw captive power plant was sealed in the presence of chief minister Buddhadeb Bhattacharjee at Writers’ Buildings.

A land and land reforms department official, however, said the industrial development corporation had sent it a proposal to acquire land under the act.

“Land acquisition at Salanpur in Asansol will be done in exactly the same way as in Singur,” land and land reforms minister Abdur Rezzak Mollah told The Telegraph.

Of the 2,500 acres required, only 165 acres now lie with the state. Sen said the government will offer the land to Bhushan on a long lease. The ownership will remain with the corporation.

The chief minister said the government wants to keep with itself the ownership of land acquired for industrial units, including special economic zones. “I’ve spoken to Pranab Mukherjee. We want government intervention in land acquisition for two reasons: to ensure that farmers get the right price and the ownership remains with the government,” he said.

Bhushan Steel MD Neeraj Singal (picture left) said he didn’t expect any problem with acquisition. “We hope to start work in a year. The plant should be operational in four years after that,” he added.

The company also promised a rehabilitation package, which included vocational training, educational facilities and self-employment schemes for those displaced.

Bhushan will use iron ore fines to make steel, as will Jindal Steel at its 10 million-tonne project near Kharagpur.

The company also plans to set up a cold rolling mill in North 24-Parganas to make auto industry components.