Ranchi, Jan. 10: Jindal Steel and Power Ltd (JSPL), which today took over UMI Special Steel Ltd, declared that they would set up a 5-million-tonne steel plant at the Bhurkunda site in Hazaribagh.

In July 2005, JSPL had signed an MoU with the state government for setting up an integrated steel plant of 5-million tonne capacity and a 1,000 MW power plant near Asanboni station in East Singhbhum involving a net capital outlay of Rs 11,500 crore.

The company had also filed an application for 3,000 acres in Potka and Ghatshila and for another 2,500 acres in Jamshedpur, being one of the first companies to deposit 80 per cent of the cost of land with the state.

However, with lands yet to be allotted, JSPL has now acquired the closed UMI Special Steel Ltd plant at Bhurkunda in Hazaribagh district and announced plans to set up another steel plant there.

The plant had ceased operations in 1997. The following year, UMI was referred to the Board for Industrial and Financial Reconstruction (BIFR) for a suitable rehabilitation package. Later, however, BIFR ruled that the plant be put up for sale.

On July 18, 2006, a sale notice was put up by Jharkhand High Court calling upon interested buyers to submit detailed bids for a takeover of UMI Special Steel Ltd. The deal was finally settled in favour of Jindal Steel and Power Ltd.

Soon after, JSPL senior general manager, Avijit Ghosh, told The Telegraph that they would consider setting up a 5-million tonne steel plant on the 550 acres of lands and the 2,385 acres of freehold land which comprise the assets of the shut-down alloy steel plant.

“This is a unique moment not only for JSPL but also for the state. Our first task is to undertake a complete review of the plant and its premises, which had been shut down nine years ago,” Ghosh said.

He added that apart from setting up a steel plant, JSPL would also try to revive the alloy steel plant. He said a complete infrastructure was already in place and JSPL would try to revive the plant at the earliest.