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In his first meeting since the Nandigram fiasco on March 14, 2007, that claimed 14 lives, Indonesia-based Salim group chief executive Benny Santoso met West Bengal Chief Minister Buddhadeb Bhattacharya on Thursday and formally announced that the group agreed to relocate the chemical hub and special economic zone projects, but the alternative location would be subject to a feasibility study.
The alternative location is to be selected by the state government, which has appointed Mott McDonald, an engineering and development consultancy, to identify a new location.
Explaining the reason for a feasibility study, Prasoon Mukherjee, Santoso's India representative, said, "We have to be sure the alternative location is suitable for the project."
Mukherjee is one of the promoters of New Kolkata International Development Pvt Ltd, in which the Salim group has a 40 per cent stake.
The joint venture will develop a 10,000-acre chemical hub and a 12,500-acre multi-product SEZ, which are expected to attract an investment of around Rs 44,000 crore.
Stating that the government expected the consultancy to come up with a suitable alternative site in a month, West Bengal Commerce and Industry Minister Nirupam Sen said a fresh agreement could also be signed with the consortium for the project.
The state government had withdrawn the decision to locate these projects in Nandigram, 160 km south of Kolkata, following protests by locals over land acquisition that turned violent in January and March.
The SEZ currently holds an approval in principle from the Central government's Board of Approvals. Approval requires the applicant to file details of land acquisition at a later date.
Sources pointed out that with the change in location, the government might have to make fresh applications for the new location.
