Jindals pluck Maoist thorn

Kolkata, Sept. 9: The Jindals have approached the Centre to drop the special economic zone (SEZ) label from their steel project in Bengal, citing global recession but plucking out the key reason cited by Maoists for opposing the venture.

The Salboni project in West Midnapore had become a lightning rod for the Maoists who bombed the chief minister’s route while he was returning from the foundation ceremony in 2008, setting off a chain of events that ignited the still-smouldering flames in Lalgarh.

JSW Bengal Steel, which is building the Rs 35,000-crore plant, has moved the board of approval under the Union commerce ministry to denotify the area. The Bengal government has approved the change of plan by the Jindals and recommended the denotification to the Centre.

Another group firm, JSL Stainless Ltd, has decided to surrender its SEZ status in Orissa. The Centre is unlikely to have any objection to drop the tag as SEZ has more or less become a politicial hot potato — 18 such zones have been scrapped so far.

The Maoists have been opposing SEZs mainly on two counts: they feel the three-letter abbreviation is a synonym for land grab meant for real estate development and an excuse for flouting labour laws and exploiting people in the neighbourhood.

The Jindals have cited the slow economic recovery abroad and the consequent flat demand for exports as the reason for seeking the change in status.

Biswadip Gupta, the CEO of JSW Bengal Steel, said the company would not give up land or drop any section of the project in Salboni. The company is in possession of 4,457 acres, a large chunk of which was handed over by the government from the vested land pool.

Maoists had in the past questioned the state government’s decision to give away the land, which the rebels claimed was kept for distribution among tribals.

Gupta said the decision to withdraw SEZ status was done keeping in mind the changed economic circumstances. Asked if it would blunt Maoist protests against the project, he said: “It will be just like any other plant in the country,” indicating there is no specific reason for a protest now.

Explaining the economic reason, Gupta said: “We wanted to export slabs (semi-finished steel) to process and make the final product in the group’s US plants. But the idea has been dropped.”

Work on the Salboni project may start in December this year, he added.


The Telegraph