Jindal shares

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By OUR SPECIAL CORRESPONDENT in Calcutta
  • Published 4.07.07
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Calcutta, July 4: Industries minister Nirupam Sen today said jobs and shares for those who lose land because of the Jindal steel plant are not part of the agreement between the government and the group.

“The question of giving jobs to members of families who lose land does not arise as it is not part of the agreement between the government and the Jindal company. Similarly, the agreement doesn’t have a word on offering shares to landlosers,’’ Sen said.

Reacting to the Jindals’ “commitment’’ to provide jobs and shares to those displaced, the minister said: “They may have said so to fulfil a corporate social responsibility. But I’m not officially aware of such commitments. I came to know about them from the media.”

The head of the Jindals’ Bengal project, Biswadip Gupta, confirmed the company’s commitment, but added: “The shares and job compensation that Sajjan Jindal announced in front of the chief minister is for the direct purchase of land. The government is not involved in this. So it is not there in the agreement.”

The Jindals are buying 510 acres directly. This will involve relocation of 741 families. The payment for the land — Rs 2.75 lakh to Rs 3 lakh an acre —will start on Friday.

The group will make a written commitment to those selling land directly that they will get free shares under the promoters’ quota when the company is listed.

Sen, however, said that a rehabilitation package, which includes training for upgradation of various skills and construction of houses, for those to be displaced by the Rs 35,000-crore project, was part of the agreement.