Ranchi, Jan. 29: In a major boost to industrialisation in Jharkhand, Jindal Steel and Power Limited (JSPL) is set to start commercial production at its Patratu plant from next month.

Among a plethora of MoUs inked since the state was born in 2000, JSPL, arguably, will be the first mega sector company to start production despite hiccups. Others like ArcelorMittal, Tata Steel, JSW Steel Jharkhand Limited, Essar Steel are still grappling with land issues.

Congress MP and JSPL boss Naveen Jindal has pledged an investment of over Rs 25,000 crore in the state, where it plans a host of steel, power and other industrial units.

“We are in the final stage of commissioning our 0.6 million tonne per annum (MTPA) rolling mill plant in Patratu. It will produce six to 12mm width wires. Our executive vice-chairman-cum-managing director (Naveen Jindal) will inaugurate the mill in mid-February,” JSPL’s assistant vice-president Avijit Ghosh told The Telegraph. He added that various national and international agencies were executing the final phase on a war footing.

The steel behemoth also aims to start production at its proposed 1MT bar mill plant in Patratu by September 2010. The unit will produce finished TMT bars. December 2011 has been fixed as the deadline for production at its proposed 3MT integrated steel plant on the same premises.

The company, which successfully acquired the ailing unit of erstwhile Bihar Alloys and Steel Limited (BASL) at Balkudra village near Patratu in neighbouring Ramgarh district, is in possession of 1,200 acres of land. The unit is situated about 45km from the state capital. At present, it employs 1,200 permanent and temporary employees. It runs an industrial training institute, named after founder O.P. Jindal, and has also started a higher secondary school.

The JSPL had signed two MoUs with the state government for setting up a total of 11MTPA steel plants at Asanboni (East Singhbhum) and Patratu in 2005 and 2007, respectively. However, due to ready availability of land in Patratu, things moved swiftly there.

In Asanboni, land has been identified and the company is in the process of directly purchasing it from villagers. But major acquisition can take place only after the new government declares its R&R policy. The Jindal group has already been allotted iron ore mines spread over 537 acres at Jaraldaburu (70MT) in West Singhbhum, but it has applied for a couple of leases more. It also has on lease two coal blocks at Jeetpur (Godda) and Amarkonda (Dumka).