Kolkata: Kalyani Steel, part of $2.1-billion global auto-component solution major Kalyani Group whose flagship company is Bharat Forge (BFL), Thursday inked a memorandum of understanding (MoU) with West Bengal Industrial Development (WBIDC) to set up a steel plant.

The proposed plant will have a capacity to produce one million tonnes of speciality steel. It will also have a 500-MW captive power plant.

"The deal has been finalised with the Kalyani Steel, WBIDC and West Bengal Mineral Development and Training Corp (WBMDTC) with an investment of Rs.65 billion," Kalyani Steel Director Amit B. Kalyani told reporters here Thursday.

He said the state government has already short-listed two areas at Shalboni in West Midnapore district, near the proposed steel plant by Jindal Group, and at Burdwan district's industrial township of Durgapur.

Kalyani Steel is a leading manufacturer of forging and other engineering quality carbon and alloy steels. The company was established in 1973 to fulfil the in-house requirement of forging quality steel of the Kalyani Group.

"We will conduct a study in both the areas keeping in mind all aspects to develop industries there. The detailed project report (DPR) is expected to be completed within 12 months from now," Kalyani said, adding that the project was likely to be completed within 36-45 months from the day construction starts.