Bhushan Steel has deferred its planned Rs 20,000-crore steel project in West Bengal due to the state government’s decision not to acquire land for industry as well as uncertainty over Sumitomo Industries’ participation in the project.
The six million-tonne greenfield plant will require 2,500 acres of land. The Delhi-based steelmaker will review the greenfield steel plant at Salanpur in the industrial belt of Asansol around September-October.
Earlier, Bhushan Steel had announced that it is keen to take 26-40% stake in the project, but the Japanese firm's proposed merger with Nippon Steel has raised doubts over its India plans. Nippon Steel too has been eyeing a joint venture with Tata Steel. Bhushan's Salanpur plant was supposed to have an initial capacity of 3 million tonne and start production by 2015.
Bhushan Steel has three plants in Uttar Pradesh, Maharashtra and Orissa, with total annual production capacity of more than 2 million tones. It produces secondary steel products like cold-rolled coils, galvanised coils, high tensile steel strapping and colour coated coils.
