After cutting investment in the first phase of its ambitious 10 million tonne per annum West Bengal project by almost a third, JSW Steel said 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.

Mr Sajjan Jindal vice CMD of JSW Steel on the sidelines of an ASSOCHAM conference told reporters that “There is a slight deferral for some time till the economic situation improves.”

He added that 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 to 8 months.

JSW Steel had earlier this year said it was cutting its proposed investment by nearly one -third, to about INR 4,000 crore for the first phase of the INR 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 INR 10,000 crore to INR 12,000 crore. When asked if its 10 million tonne per annum proposed steel project in Jharkhand would also be delayed on account of the current economic environment, Jindal said the firm is working to get all the regulatory approvals.

(Sourced from PTI)