Calcutta, Nov. 30: Videocon Industries today claimed to have done what no company has managed in recent years — negotiate directly with land owners for 2,000 acres.

Its chairman, Venugopal N. Dhoot, said the company has spoken to 250-odd families in the vicinity of Asansol for its proposed steel and power plant.

“We’ll soon seek the government’s approval to start the process of acquisition. We have offered cash and stock as compensation,” Dhoot said here.

A new company — Videocon Steel and Power — will build the 3 million-tonne steel and 1,200MW thermal power plant on 4,000 acres. The project will start with 2,000 acres.

Dhoot, as well as industry body Assocham that he heads, have been in favour of industry directly buying land for a project without government intervention.

The government and the CPM, which were opposed to the idea initially, have come around of late.

“I think the work on the project can start in three to six months. Production will start three-and-a-half years from then,” said Dhoot.

The government has acquired land for all projects so far by invoking the land acquisition act. Some companies, like Jai Balaji Group, tried to follow the direct-purchase model but did not make much progress.

An industry observer said: “Ownership of land is fragmented in Bengal because of land reforms. This makes acquisition and formation of a land bank doubly difficult. The land ceiling law, which limits ownership, is another stumbling block. It is difficult to acquire a small piece of land directly, leave alone large tracts.”

Sources said Videocon carried out a study to ascertain the compensation it has to pay.

The feasibility study for the project will be submitted to the government in the first week of December. A study on its socio-economic impact will be carried out soon.

The company expects the government’s consent by mid-January.

It has identified Jamuria and Barabani as possible locations for the project. But Jamuria is preferred for its mostly barren or single-crop land.

Asansol-Durgapur Development Authority CEO Smarki Mahapatra said it will play no role in the land purchase. “We have earmarked the land as it is mostly barren and unutilised. The company will buy the plots from owners. We are not doing anything,” he said.