Two Indian steel companies have returned land earlier secured by them to the provincial government of West Bengal, claiming that proposed projects are unviable against current downturn in global steel industry, a senior government official said on Tuesday, September 20.
He said that Jai Balaji Group returned a land parcel estimated at 1,100 acres and Adhunik Group 700 acres to the West Bengal government and will be paid back the acquisition cost of the land by the government but without any interest.
The Jai Balaji Group planned a 5 million mt per year steel mill including a 3 million mt per year cement grinding unit, at an estimated investment of $2.3 billion. The Adhunik Group has proposed investing $1.5 billion for a 1.1 million mt per year steel mill including a captive power plant.
Both the project was conceived and agreement with West Bengal government was signed in 2007 but companies decided not to go ahead with the investments as turnaround in domestic and international steel industry environment was not expected soon, the official added.