Waiting for the promised land: Avijit Ghosh, senior general manager, JSPL. Picture by Prashant Mitra

The takeover of Bihar Alloy Steel Ltd now known as UMI Special Steel Ltd has come as a shot in the arm for Jindal Steel and Power Ltd (JSPL).

“We are now firmly in Jharkhand. And we have proved that we are serious players, committed to the development of Jharkhand,” claims Avijit Ghosh, JSPL senior general manager, who heads the Jharkhand operations. However, Ghosh is quick to point out that their acquisition of UMI Steel would not impede, in any way, the implementation of the MoU signed with the state government envisaging setting up of a steel and power plant in the West Singhbhum district.

The senior general manager, who handles JSPL’s Jharkhand operations, holds a degree in mining from the Indian School of Mines, Dhanbad.

However, more than the educational qualifications and his experience at Indian Oil and Hindustan Copper before he joined the Jindals in 1999, Ghosh possesses an inherent edge over the others in that he belongs to Ranchi, where he was born and brought up.

Ghosh spoke to Rudra Biswasat his modest office at Ashoknagar, Ranchi on JSPL’s plans to set up a steel and power plant in Jharkhand.

What is the progress of JSPL’s steel and power plant in Jharkhand?

We had signed an MoU with the state government on July 5, 2005 for setting up an integrated steel plant of 5 million tonne capacity and a 1000 MW power plant near Asanboni station in East Singhbhum involving a net capital outlay of Rs 11, 500 crore.

Application has already been filed for 3000 acres in Potka and Ghatshila and for another 2500 acres in Jamshedpur. JSPL is also the first to deposit 80 percent of the cost of land with the state government.

Have you got the required land?

The process is on. We understand that the process of land acquisition is a lengthy one and we are hopeful that the state government would allot the necessary lands on a priority basis.

The location of our lands is such that they flank both sides of the Subernarekha at Asanboni. We will begin construction of a 275-m long bridge connecting the two plots as soon as the lands are allotted.

The proposed bridge would be a four-lane one just like the bridge at Mango in Jamshedpur. The designs of the bridge are ready.

Is there a delay in project implementation due to non-allotment of lands by the state government?

The first phase of production from our proposed steel plant would commence within three years from the allotment of land. Though our steel and power projects are behind schedule, JSPL is not sitting idle.

On September 30, JSPL acquired UMI Special Steel formerly known as Bihar Alloy Steel Ltd at Patratu in Hazaribagh district. The entire process of acquisition is likely to be completed by next month. Once we are in possession of the land, JSPL would go full steam in reviving the plant and would even explore the possibility of setting up another steel plant there.

Have you also applied for iron ore and coal blocks?

We have applied for iron ore mines in West Singhbhum and coal blocks with the appropriate authorities. As per a feasibility report drawn up by Mecon, our requirement of iron ore will be 325 million tonnes and 770 million tonnes of coal for 30 years.

Is JSPL framing its own rehabilitation and resettlement policy?

We are waiting for the state government to come out with the promised rehabilitation and resettlement policy.

So far as we are concerned, JSPL would set up schools, hospitals and sponsor ancillary industries and even train local people to ensure quality manpower supply both for the ancillaries as well as for the parent industries. We would go all out to support local people and win their confidence.

Regarding your power plant, where do you propose to sell all the energy produced? And in what phases would the power plant come up?

We would require around 800 MW for our proposed integrated steel plant. A certain portion of power would be needed to meet our own requirements. However, all surplus power would be sold to the national grid.

Our consultants, Mecon, are drawing up the module for our power plant. Application for 5 MVA power from Jadugora substation for construction purposes has been filed with Jharkhand State Electricity Board.

What problems are you facing?

So far, we have received all help from the various authorities. Because of the active co-operation we have received, JSPL was able to identify its required lands with the help of maps supplied by the state authorities, within one month.