Calcutta, Sept. 27: Jai Balaji Sponge Ltd will invest Rs 450 crore in its proposed special economic zone (SEZ) for steel processing near Durgapur. The company, which recently changed its name to Jai Balaji Industries Ltd, also plans to develop a 5mt steel plant in Purulia at an investment of Rs 16,000 crore.

The board of approval had given its in-principle nod to the SEZ project in June this year. However, unless the company prepares a compensation and rehabilitation package, it cannot acquire land. “Land for the SEZ has been identified. We’ll need over 300 acres. We are in talks with the Bengal government for acquiring the land. However, we don’t want to push it in a hurry,” said Aditya Jajodia, chairman and managing director of the company.

“We have estimated an investment of Rs 450 crore over the next two to three years for the SEZ project,” he added. The project will be funded through a mix of internal accruals and debt. The promoters may also go in for an issue of fresh equity.

On the Purulia project, Jajodia said, “We’ll shortly sign a memorandum of understanding with the state government for our Purulia project for which we’ll require 4,000 acres.” The steel plant will be developed in three phases.