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JSW defers Rs 35,000 crore West Bengal project

03 Jun 2009 Evaluate

After cutting investment in the first phase of its ambitious 10 million tonnes per annum (MTPA) West Bengal project by almost a third, JSW Steel has announced that the commencement of construction work at the site of the mega steel plant will now be deferred on account of the current “economic situation.

 

There is a slight deferral for some time (on the commencement of construction work) till the economic situation improves. Construction work at the site of the steel project in Salboni, West Bengal, was scheduled to start in March next year, but is likely to be delayed by 6-8 months.

 

Faced with a liquidity crunch, JSW Steel had earlier this year said it was cutting its proposed investment by nearly one-third, to about Rs 4,000 crore for the first phase of the Rs 35,000-crore mega steel project in West Bengal. In November last year, the company had laid the foundation stone for the project and said the first phase with a three million tonne capacity would come up at the cost of Rs 10,000-12,000 crore.

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