Sources said the R&R package has been submitted to the West Bengal Industrial Development Corporation (WBIDC) and it entails giving land to all land-losers, besides the compensation.

This package is being worked out for those who may be displaced by a 2 million tonne integrated steel plant and a 1,000 mw captive power plant that Bhushan is setting up in the Salanpur industrial belt, near Asansol, around 260 km from Kolkata.

The steel plant's twin project is a 0.5 million tonne cold rolled and galvanizing plant for automobile grade steel and may require around 90 acres. Investment for the two projects is estimated to be Rs 9,000 crore (Rs 90 billion). The package, however, is meant for the steel plant.

"The total land requirement for the project is 2,500 acres, most of which is barren and only some of it is used for single crop cultivation," the sources said.  According to the package, each of the land-losers will get a percentage of landholding. The free land concept was mooted by state Commerce and Industry Minister Nirupam Sen.

Unlike the JSW Bengal project, where the private land was acquired by the company, the land for Bhushan's facility will be acquired by WBIDC and this acquisition process may be completed by the next financial year-end.

During the negotiations, the company communicated its rehabilitation and resettlement to the project-hit people. International steel major Posco, which announced its R&R package earlier this year, offered land for the displaced families, but not to the project-affected families.

"Bhushan's package includes all affected-families," said the sources.  This is the second exemplary R&R package announced by a company in Bengal.

JSW Bengal Steel announced that it would give free shares of the company to all land-losers for its Rs 35,000 crore (Rs 350 billion) project, equivalent to the cash compensation. The company is building a 10 million tonne plant.

The Jindal package for Bengal has three components: employment for at least one person per family losing land, compensation for land price (50 per cent cash and 50 per cent annuity from LIC [Get Quote]) and free shares at-par equivalent to the land price.

Walking the talk

• Bhushan Steel will give free land to land-losers as part of its R&R package, for all those displaced by its 2-million tonne integrated steel plant and 1,000 mw captive power plant at Salanpur. The land for the project will be acquired by the West
• Bengal Industrial Development Corporation and the process will be completed by the next financial year-end.
• JSW has already announced free shares of the company to all land-losers at its Rs 35,000 crore, 10 million tonne plant in the state.
• Jindal's package includes employment for at least one person per family losing land, compensation for land price and free shares at-par equivalent to the land price.
• International steel major Posco's package offers land for the displaced-families but not to the project-affected families.