Calcutta, Sept. 24: The state where the steel industry began its journey in India is staging a comeback.

Bengal is set to attract over Rs 100,000 crore in investment in steel, surpassing iron-ore producing states such as Chhattisgarh.

It now stands third among Indian states — after Orissa and Jharkhand — where steel projects have been proposed, though Bengal does not produce any iron ore.

Orissa, Jharkhand and Chhattisgarh have been the frontrunners in attracting big bucks in steel, an industry known for its multiplier effect on the economy and the ability to create jobs, but Bengal has staged a coup of sorts this year.

The feat is commendable as Bengal has caught up with states endowed with iron ore and coal.

According to a CII-McKinsey study, Jharkhand, Chhattisgarh and Orissa have 56 per cent of India’s iron ore deposits and 70 per cent of coal.

Bengal has some coal reserves but that is negligible compared with the Big Three.

So why has the steel industry set its sights on Bengal?

The Videocon group, which is making a maiden foray into steel by proposing a 3-million-tonne plant in Bengal, believes its project will come up faster here than in other states.

“The government is supportive and it means business. This is why they want to sign definitive agreements rather than MoUs,” a Videocon official said.

The group also says all its projects in Bengal have been a success, which has inspired confidence.

“I think they believe the industrial climate is congenial here. Projects are also getting a good response from local people,” said Bengal industries minister Nirupam Sen.

While mineral-rich eastern states signed MoUs with steel majors such as ArcelorMittal, Posco and Tata Steel with fanfare, progress has been slow. Resistance from local people and delay in mining rights and rehabilitation packages have slowed down projects in these states.

Posco, for instance, signed an MoU with Orissa in 2005. But it is yet to get hold of the land needed for its plant.

JSW Steel signed an agreement with Bengal in January and is hoping to start work soon.

Sen said most of Bengal's steel plants would come up in backward districts such as Purulia, Birbhum and West Midnapore.

“The land is not fertile there. People cutting across political colours are happy that industries are coming,” he added.

For Bengal, the JSW project has been the turning point as the company decided to set up a plant without depending on captive iron ore mines. While all steel companies bank on iron ore — mostly exported to China now — from other states, coal is a big draw here.

However, Sen said the government would lobby the Centre for more coal. “Unless we provide the private companies with enough coal, which they will use to make cheap captive power and thereby reduce cost, the investments would be in trouble,” he said.