Jindal Steel Plant at Salboni, West Bengal, India

Description

The proposed Jindal Steel Plant (JSP) is located at Salboni in West Midinipore district of West Bengal. The proposed steel plant is a part of JSW Steel. To set up a steel plant, the company had signed an agreement in 2007 with the then West Bengal government, headed by the Left Front. The estimated original cost of the project was about Rs 35,000 crore. The proposed steel plant was designed for an annual production capacity of 10mt per annum, along with an integrated 1,620 Mw power plant. For the proposed plant total land requirement is about 4,343 acres [1]. About 90 per cent of the land is owned by the state government and is leased to the company [2] The project has not been materialized due to many hurdles for example, inability to secure an iron ore linkage. Also, the company wanted to change the original agreement. Due to delay in implementation of the project, mentioned above, present Bengal government had threatened the company to take back the land if the company has not finish the project [1]. However, the Bengal government is cooperative and has initiated talk with the Odisha government to facilitate procurement of raw material to start the project as soon as possible [3] Most of the land for the project was acquired at the initial stage by the earlier government. Among the total 4,343 acres of land, the state government directly acquired 294 acres from land owners and another 189 acres from tillers or patta holders (vested government land holders). Beside this, 3,052 acres of vested land was handed over to the company. State animal husbandry department has also given up 799 acres for the project. In the land acquisition process, around 500-700 farmers have given up their land for the Plant. In June 2014, farmers have started agitation with their demands of compensation. They alleged that company is yet to fulfill the promises that they made while acquiring their land. According to them, in fact, while acquiring their land, the company had agreed to provide a job to one member of each of the 1,200 families, shares, drinking water and free medical check-ups [4]

Basic Data
NameJindal Steel Plant at Salboni, West Bengal, India
CountryIndia
ProvinceWest Bengal
SiteTown-Salboni; District- West Midinipore
Accuracy of LocationHIGH local level
Source of Conflict
Type of Conflict (1st level)Industrial and Utilities conflicts
Type of Conflict (2nd level)Land acquisition conflicts
Mineral processing
Specific CommoditiesLand
Steel
Project Details and Actors
Project DetailsJSW is a part of the O.P. Jindal Group. The annual turnover of the company is about $11 billion. It has production capacity of 14.3 MTPA. JSW Steel signed a development arrangement with Government of West Bengal, West Bengal State Electricity Distribution Company Limited (WBIDCL) and The West Bengal Mineral Development and Trading Corporation Limited (WBMDTC) to build a 10 MTPA steel plant in phases at Salboni, West Midnapur District. The Environment clearance for the project has been obtained. Along with this, a 1620 MW power plant is also being planned for the steel plant [5, 6].
Project Area (in hectares)1757
Level of Investment (in USD)5,809,563,903 (Rs 35,000 crore)
Type of PopulationRural
Potential Affected Population6,000-10,000
Start Date02/11/2008
Company Names or State EnterprisesJSW Steel Ltd from India
O.P. Jindal Group from India
Relevant government actorsGovernment of West Bengal, Government of Orissa, Ministry of Environment and Forest, Government of India

Environmental justice organisations and other supportersLocal Villagers
The Conflict and the Mobilization
Intensity of Conflict (at highest level)MEDIUM (street protests, visible mobilization)
When did the mobilization beginIn REACTION to the implementation (during construction or operation)
Groups MobilizingFarmers
Landless peasants
Neighbours/citizens/communities
Forms of MobilizationBlockades
Public campaigns
Street protest/marches
Impacts
Environmental ImpactsPotential: Air pollution, Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Noise pollution, Deforestation and loss of vegetation cover, Groundwater pollution or depletion
Socio-economic ImpactsVisible: Land dispossession
Potential: Displacement, Loss of livelihood, Violations of human rights, Loss of landscape/sense of place
Outcome
Project StatusUnder construction
Pathways for conflict outcome / responseCompensation
Strengthening of participation
Development of AlternativesNo significant alternatives to mention.

However, people whose land will be acquired for the construction of the plant asked for specific compensation measures [4]. These have not been met yet.

Do you consider this as a success?No
Why? Explain briefly.The plant is still under construction but reparations have not been implemented.
Sources and Materials
Links

[1] April start for JSW Salboni power plant
[click to view]

[4] Give jobs or monthly pay: Jindal plant land-losers
[click to view]

[2] Salboni project: West Bengal govt gives ultimatum to JSW
[click to view]

[3] Hope for Jindal Salboni plant
[click to view]

[5] Projects under development
[click to view]

[6] About JSW Group
[click to view]

Other Documents

The site of the proposed JSW steel plant at Salboni in West Medinipur district, West Bengal Source : http://www.thehindubusinessline.in/life/2010/07/30/stories/2010073050140400.htm
[click to view]

Meta Information
ContributorSwapan Kumar Patra
Last update01/07/2014
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