The project would come up on 4,000 acres, which will be acquired by the West Bengal Industrial Development Corp, the chairman and managing director of Jai Balaji group, Aditya Jajodia, said.
The foundation stone-laying ceremony would be held on October 16, and the first phase, involving a capacity of two million tonne, would go on stream in three years, he said.
The agreement was signed between chief minister Buddhadeb Bhattacharjee and the Jai Balaji group.
The group will also set up a training centre to train land losers so that they could get jobs in the project.
Anil Ambani man meets chief minister
The high-profile investment strategist of Anil Ambani group, Madhusudan Kela, on Thursday met Buddhadeb Bhattacharjee at a city hotel, where the chief minister signed two memorandums of agreememt with Venugopal Dhoot and the Jai Balaji Group.
Kela reportedly came at the insistence of Dhoot to seek opportunities as financial investor to various projects that are coming up in West Bengal.