Ranchi, Jan. 15: Recession or political turmoil would not pose any hurdle for the Patratu unit of Jindal Steel and Power Limited (JSPL), which is set to begin its steel production next year.

The production would start with an initial capacity of three metric tonne per annum, said Askari H. Zaidi, the vice-president, corporate communications of JSPL, who was inspecting the plant, situated about 35km from Ranchi.

Congress Lok Sabha member Naveen Jindal owns the company.

JSPL’s bid to acquire the ailing Bihar Alloy and Steel Limited (BASL) with its ready-to-use over 600-acre area proved to be a boon for the company while other mega investors like ArcelorMittal and JSW Steel Jharkhand Limited are still struggling with land acquisition issues in the state.

If all goes according to plan, JSPL may well be the first mega-sector investor company to set up plants here. The company has signed a number of MoUs with the state government proposing an investment of over Rs 25,000 crore in the steel and power sector.

Although JSPL’s first MoU with the state government was in 2005 for its proposed 5 MTPA steel plant in Asanboni in Jamshedpur, the company had faced several problems with villagers over land issues.

Then the company shifted its focus towards the BASL project, an MoU for which was signed in 2007 for a 6 MTPA steel production capacity. Besides the 600-acre area, the company has also bought about 300-350 acres in the neighbourhood from villagers directly.

“Our Asanboni project is also on. But for now BASL unit is our priority,” said Zaidi adding that the Patratu-based plant would focus on producing basic steel material.

Besides, the company also plans to come up with two captive thermal power plants of 1,000MW each.

Moreover, JSPL’s sister concern, Jindal Power Limited (JPL) has also proposed a 600MW powerplant in Santhal Pargana area.