TATA Metaliks to reconsider decision on project in WB
At the behest of the West Bengal government, TATA Metaliks will reconsider its decision to scrap its expansion project in the state.
Mr Harsh K Jha MD of TATA Metaliks said that the government of West Bengal has requested the company to reconsider its decision and the company would do so. He said that "This will be taken up at the forthcoming board meeting of TATA Metaliks and the decision will be conveyed to the state government."
He added that exactly a month ago, the company had announced its decision to scrap the project in West Bengal.
The main issue, apart from the inordinate delay was the pricing of the land. The price of land in Kharagpur had more than doubled since the West Bengal Industrial Development Corporation started acquiring land for the project three years back. Three years back the price was INR 0.35 to 0.45 million an acre while it was now at INR 0.8 to 0.95 million an acre. The company was asked to pay the higher price.
Mr Subrata Gupta MD of WBIDC said that the discussion had been held with the company and was awaiting a response from them. The price was subject to negotiation.
The company was likely to ask for a firm commitment from the government on the timeline and price. Of the total requirement of 350 acres, WBIDC had already acquired more than 200 acres. The plot was adjacent to TATA Metaliks’ existing facility at Kharagpur. The Bengal project as originally conceived, was a 0.5 million tonne billet making plant and the investment was INR 700 crore to INR 800 crore.
(Source : Business Standards)
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