Kolkata-based Jai Balaji Industries Ltd has announced to set up its new integrated steel, cement and power plant in eastern West Bengal state. The chairman and the managing director of the steel manufacturing company said that construction work of the new project will get kick-started by the end of January 2009. The local authorities have also provided 750 acres of land for the industrial project of Jai Balaji.

 

In a statement issued to media, the company said that about 40 billion rupees will be spent over the next 36 months to set up the project. Under the proposed project, a 2 million-tonne steel plant, a one-million-tonne cement plant and a 400 megawatts power unit will be built. The company is expected to get the non-coking coal from the nearby areas and iron ore fines will be brought from neighbouring Orissa and Jharkhand.

 

After the initial phase, Jai Balaji has plans to expand the plant's steel-making capacity to 5-million-tonnes, cement capacity to 3-million-tonnes and power to 1,215 megawatts. Media reports on December 18 said that Jai Balaji has decided to dilute 15 percent stake in favour of Citi Venture Capital Fund and India Equity Partners, as a part of its Rs 5.87 billion fund raising program.