The formal signing of the MoU comes after a series of negotiation that the two sides were holding for the past one and half year.

The group, whose flagship company is Bharat Forge Ltd, is keen to set the plants at Salboni in West Midnapore and in the Asansol-Durgapur belt, the decision on which will be taken only after the firm prepares a Detailed Project Report (DPR) by next year.

“The project will provide direct employment to around 3,000 people but the multiplier effect of the project is going to be far more significant,” said Amit Kalyani, the executive director of Bharat Forge Ltd. He said that the project would be completed in three and half years from the date of the commencement of the work.

“The steel produced at this unit will find a market in the automotive, rail, engineering, mining and power sectors all of which have a significant presence in this part of the country,” he further added. While both the sides did not comment on the amount of land on which these two projects will come up, the representatives of the private firm said they would adopt adequate measures to train the locals enabling them to work in the plants.