JSW Steel has announced a package that includes free
shares to landholders who sell their land to JSW Bengal
Steel, the Rs 35,000 crore, 10 million tonne steel plant
proposed to be set up at Salboni in West Medinipur, around
200 km from Kolkata.
JSW Steel vice chairman and managing director Sajjan Jindal
announced the package at a joint press briefing with West
Bengal chief minister Buddhadeb Bhattacharjee at Writers''
Buildings, the state secretariat.
The offer of shares over and above the compensation package
comes amid a raging debate about the impact of land acquisition
on those losing land.
JSW package for Bengal offers employment for at least
one person per family losing land, compensation for land
price (50 per cent in cash and 50 per cent annuity from
Life Insurance Corporation) and free shares at par equivalent
to the land price.
should be the owners of this plant. Because the project
is coming in their area, they should be owners of the
plant, and they must get benefit out of the development
that happens there," said Jindal.
isn''t a very big plot that JSW Steel is looking to acquire,
500 acres at the most. The rest is government-owned property.
The project is unlikely to face resistance from farmers,
and the plant should be ready by April of 2011. But most
importantly, if this compensation package works, it will
set a new benchmark, he said.
company said the shares to be distributed to the project-displaced
would be administered by a trust under the district magistrate
or the West Bengal government and will have a lock-in
period till the first phase of the plant is complete,
ie, March 2011.
The West Bengal Industrial Development Corporation (WBIDC)
has 11 per cent stake in JSW Bengal Steel, with the balance
held by JSW group.
While around 740 families are expected to lose land, Jindal
said the package is meant for landowners who earn an income
Of the total area of 4,800 acres needed for the project,
450-500 acres is private land and the rest, government
is the first time that a company has announced that it
will give shares to those losing land over and above a
Public hearing for environment clearance will begin in
August and Jindal expects to get possession of the land
2-3 months after that.