The OP Jindal group has planned to set up an integrated steel plant in West Bengal. The plant with a capacity of 5 million tpa will cost Rs.10,000-12,000 crore.

The plant will come in two phases of 2.5 million tpa each, with an overall gestation period of three-four years. The project would have a debt-equity ratio of 1:1, with equity coming from internal accruals.

West Bengal was chosen as the location for proximity of coal reserves and availability of skilled manpower and the existence of a port. However, availability of iron ore would have to be looked into. Even though abundant iron ore reserves exist in neighbouring Orissa, the state does not permit exports, as per current guidelines. Iron ore could also be sourced from Jharkhand.

The West Bengal state government has already identified 3,000 acres of land near Kharagpur for the project. If the identified land is not found suitable, some other areas in Bankura or Purulia districts would be offered. Kharagpur would have the advantage of a port and iron ore deposits being in close proximity. 

The Jindal group is already in the midst of a capacity expansion project in Chhattisgarh and a greenfield integrated stainless steel plant in Orissa. This proposed plant in West Bengal would be the group's first in the state.