KOLKATA: If political strife claimed the much-touted Nano, the global economic gloom might jeopardize another pet project of chief minister Buddhadeb Bhattacharjee the JSW Steel plant at Salboni in West Midnapore.

In a financial release on Wednesday, JSW said it would put all its greenfield projects under review and pursue them at an appropriate time depending on market conditions. The proposed factory in Salboni is one such project.

Sajjan Jindal had proposed a Rs 30,000-crore investment and employment of over 10,000 people in Salboni, which alone could have boosted the state's economy. Besides, the project was a face-saver for the CM after the Tata pullout from Singur.

While all work at the plant site has come to a halt, JSW Bengal Steel joint managing director Biswadip Gupta said work on the boundary wall was on and construction would begin as soon as funds come. "We've completed a third of the 38-km long fencing," he said.

JSW has also indicated in a statement that it would moderate its capital expenditure programme and may cut down production in operational plants.

More than a dozen contractors had begun construction work at the JSW steel plant site in Jambedia, Salboni, after the stone-laying ceremony in November. Work was on in full swing despite the Maoist threat.

But now residents of Salboni are disappointed as work on the Jindal steel plant has been stopped for the last one month. The state government has set up a police camp at Jambedia with 24 armed policemen.

Shyamal Mahato, one of the land donors for the Jindal project, said: "We came to know from the contractors that Jindal has stopped their payment and so, they have stopped work. We are now suspicious about the Left Front leaders shouting for industrialisation. Party leaders are using the Jindal project as their successful attempt at industrialisation."

"More than one dozen contractors took loans from banks for construction of the project site. Some of us loaned Rs 6 lakh, but Jindal has not paid our bills and we could not purchase raw materials anymore. So, we stopped. We hope they will pay and start work," said Amalesh Bhuian, one of the victim contractors.

Shanti Bhuian, CPM's Bhadutala local committee secretary, said: "We are losing patience. We had hoped that a reputed company like Jindal will complete its work speedily. We came to know that instead, it is decreasing its investment here," she added.

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