It’s a week of steel stealing a march in Bengal. For the industry-starved state, the year looks poised to end with good news, even though wayward opposition by vested interests against Tata’s proposed car plant at Singur still sticks in the neck.
Coming to investments in steel in the state, one is a government initiative, the other private. IISCO (Indian Iron & Steel Company), that was once a blue chip trading on LSE (London Stock Exchange), is today like a skeleton of former self. Its 130+ years old Burnpur plant (near Asansol) is no longer a viable producer of steel because of lack of modernization.
Burnpur plant – fresh lease of life [Picture source]
After much dilly-dally, IISCO will now see an infusion of Rs.9600 crore toward expansion and improvement of its facilities, which will be inaugurated by the Prime Minister tomorrow, Dec 24. It must be said that the upturn in global steel cycle post 2002, presumably led by the surge in demand on account of 2008 Beijing Olympics, is the reason why IISCO‘s modernization is felt more than necessary.
Massive investments are being made for steel plants in India’s east coast. South Korean giant Posco and the world’s biggest steelmaker, Mittal-Arcelor have chosen Orissa to make huge steel plants. Tata Steel too is acquiring large tracts of land in Jharkhand to expand their Jamshedpur facility.
And now, Sajjan Jindal’s JSW Steel has chosen Salboni in West Midnapore district to start their steel plant at an estimated cost of Rs.10,000 crore for 3 million tons of the metal plus a 600-megawatt captive power plant in 3 years time. This plant will ultimately scale up the capacity to 10 MT in 6 years and is billed as the single largest investment in the state.
As the steel scene hots up here, Tata Steel’s attempt to take over the Anglo-Dutch steel company, Corus gets a boost as the European Commission (EC) approves the takeover proposal. Tata Steel’s competitor, Brazil’s CSN’s proposal is also under EC’s consideration, awaiting approval.
As the year draws to a close, here’s raising toast to Bengal’s steely prospect of industrial resurge. Come what may.
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