Calcutta, June 8: Tata Iron and Steel Company (Tisco) has signed a memorandum of understanding with the government to set up a coke oven plant and a power-generating unit in Haldia with an investment of Rs 1,500 crore.

This would be one of the biggest investments in Bengal since Mitsubishi Chemical Corporation set up shop.

The project will be carried out in two phases. An 8-lakh tonne metcoke plant and a 60- MW gas-based power plant will come up first. The total investment in the first phase will be Rs 700 crore. Another set of plants with the same capacities would be set up in the second phase with an additional investment of Rs 800 crore.

The first phase will be operational by March 2006.

The plants will come up on 250 acres of the erstwhile Haldia Fertilisers near the Indian Oil Corporation installation. The closed fertiliser plant’s land is now with Haldia Dock Complex.

Deputy managing director of Tisco T. Mukherjee has written to the West Bengal Industrial Development Corporation for setting up a joint venture company for the project. The Tisco board had approved the project at its meeting on May 19.

Earlier, M.. Dastur and Company had carried out a feasibility study and recommended to the Tatas that Haldia was suitable for the coke oven plant.

The joint venture company will be formed by the end of this month. The Tatas and the industrial development corporation have already initiated talks with the State Electricity Board to work out a power purchase agreement. If the partners fail to arrive at an agreement, the joint venture company will have the option to wheel out the power to other interested companies.

Industry analysts feel that the Tatas’ decision to set up a power plant in the state may pave the way for bigger power projects. Tata Power, a group company, is already present in the power sector.

Managing director of the industrial development corporation Gopal Krishna said: “The Tatas’ association will give a boost to Bengal’s image. Moreover, in the long run, they might look into the possibility of setting up an automobile plant in the state.”

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