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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

Name of conflict:Jindal Steel Plant at Salboni, West Bengal, India
Country:India
State or province:West Bengal
Location of conflict:Town-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 commodities:Land
Steel

Project Details and Actors

Project details

JSW 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:1757
Level of Investment:5,809,563,903 (Rs 35,000 crore)
Type of populationRural
Affected Population:6,000-10,000
Start of the conflict:02/11/2008
Company names or state enterprises:JSW Steel Ltd from India
O.P. Jindal Group from India
Relevant government actors:Government of West Bengal, Government of Orissa, Ministry of Environment and Forest, Government of India
Environmental justice organizations (and other supporters) and their websites, if available:Local Villagers

Conflict & Mobilization

IntensityMEDIUM (street protests, visible mobilization)
Reaction stageIn REACTION to the implementation (during construction or operation)
Groups mobilizing:Farmers
Landless peasants
Neighbours/citizens/communities
Forms of mobilization:Blockades
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-economical ImpactsVisible: Land dispossession
Potential: Displacement, Loss of livelihood, Violations of human rights, Loss of landscape/sense of place

Outcome

Project StatusUnder construction
Conflict outcome / response:Compensation
Strengthening of participation
Development of alternatives:No 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 an environmental justice success? Was environmental justice served?:No
Briefly explain:The plant is still under construction but reparations have not been implemented.

Sources & Materials

LinksĀ to general newspaper articles, blogs or other websites

[1] April start for JSW Salboni power plant
http://www.telegraphindia.com/1131116/jsp/business/story_17575607.jsp#.U6TGLZSSzsQ

[4] Give jobs or monthly pay: Jindal plant land-losers
http://www.samachar.com/Give-jobs-or-monthly-pay-Jindal-plant-landlosers-oglcKSadjah.html

[2] Salboni project: West Bengal govt gives ultimatum to JSW
http://www.business-standard.com/article/companies/salboni-project-west-bengal-govt-gives-ultimatum-to-jsw-113030500686_1.html

[3] Hope for Jindal Salboni plant
http://timesofindia.indiatimes.com/city/kolkata/Hope-for-Jindal-Salboni-plant/articleshow/19535963.cms

[5] Projects under development
http://www.jsw.in/Steel/inner_page.php?id=4&mid=1&

[6] About JSW Group
http://www.jsw.in/Group/inner_page.php?id=6&mid=1&#organisation#organisation

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
https://file.ejatlas.org/docs/2010073050140401.jpg

Meta information

Contributor:Swapan Kumar Patra
Last update01/07/2014

Images

 

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