Burdwan, Sep 2 (IANS): The Shyam Steel Industries Limited is moving to complete the first phase of its expansion in West Bengal by 2013 but concerns remain over the shortage of coal.

The company is setting up an integrated 1.1 million tonnes per annum steel plant at Jamuria in Burdwan district along with a 1,000 MW captive power plant. The Rs.9,900-crore project is scheduled to become operational in phases, the first phase involving an investment of Rs.1,500 crore.

Currently, the company is unable to meet more than 10 percent of its total coal requirement from the trans-Damodar underground coal block. The block was allocated to them by the West Bengal government last year.

"We are waiting for feasibility reports on mining coal from the trans-Damodar block," Shyam group vice chairman and managing director B. Bhusan Agarwal said Thursday. "Initial geological surveys show that the block will be able to provide not more than 10 percent of our total requirement."

Stating that the company required three million tonnes of coal per annum in the first phase, he said: "We are hoping to complete the first phase of our operations by 2013. But it all depends on the allotment of coal block to us by the state government."

"Government officials have made a visit to note our progress," he said. "We are optimistic on the allocation of the block based on what we have achieved till now."

The group is set to expand its cement business too with a Rs.200-crore grinding facility at Siliguri in West Bengal and is also planning new cement plants at Kahalgaon in Bihar and Guwahati in Assam. Each project involves an investment of Rs.270 crore.