Despite slowdown in the steel sector, Shyam Steel has decided to go ahead with its proposed greenfield steel unit in the Purulia district of West Bengal.

However, the company has decided to cut investment in the projects first phase consisting of a 1.1 million tonne steel unit and a 150 MW power plant, from Rs.1,600 crore to Rs.1,200 crore. The unit will produce direct reduced iron for captive use at Shyam Steel's existing unit in Durgapur, where it produces construction grade steel and TMT bars.

The Chief Minister of West Bengal, Buddhadeb Bhattacharjee, will lay the foundation stone of the project at Raghunathpur in Purulia on 17 February. The total investment in the steel plant is expected be Rs.3,600 crore.

The company has also delayed its greenfield steel project at Kharagpur in Paschim Mednipur district and may implement the project once market conditions improve.

Addendum:

The Chief Minister of West Bengal, Buddhadeb Bhattacharjee laid the foundation stone of  integrated steel plant in Purulia on 17 February