Shyam Metalics & Energy Ltd is awaiting clarity on government support for land acquisition and incentives for an accelerated phase of growth in Bengal.
The company said it is investing close to ₹10,000 crore in Kharagpur and Jamuria facilities over the next three years, even as it plans to allocate double that amount going forward.
“We are just waiting for the new industrial policy. I am very optimistic that we will get a lot of support from the central government as well as the state government for new industries (in Bengal),” Brij Bhushan Agarwal, chairman and managing director of Shyam Metalics, said.
The company, which operates in the iron and steel and aluminium businesses, employs 25,000 people in the state. The number could double if it successfully executes the planned expansion projects.
“As a company with deep roots in the state of Bengal, we expect a more growth-oriented ecosystem to support faster development in infrastructure and create new investment inflow,” Agarwal added.
Shyam Metalics, which has so far grown in Bengal without fiscal incentive from the erstwhile Trinamool Congress government, expects the new government to support industry with incentives on a par with other states.
“Today, the environment countrywide has changed. There is a big competition between states. We are not expecting anything special, but it should be in line with what the other states are giving,” Agarwal explained.
While the ongoing expansions have the requisite land, the next phase of investment will require fresh acquisition, for which it expects state support. The previous government had a complete hands-off policy on land acquisition.
At present, Shyam Metalics is setting up a wagon manufacturing facility and a 1-million-tonne speciality steel unit at Kharagpur for ₹4,000 crore. In Jamuria, it is setting up an HR coil and speciality steel plant with an estimated investment of ₹2,700 crore.