UPDATE 1- JSW Steel to go ahead with Bengal project - official

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KOLKATA, Aug 26 (Reuters) - JSW Steel Ltd (JSTL.BO: Quote, Profile, Research) will go ahead with its project in West Bengal despite agitation at the Tata Motors' (TAMO.BO: Quote, Profile, Research) Singur project site, a top official said on Tuesday.

Tata Motors has faced violent protests and political opposition in the eastern state over farmland acquisition for the plant that is billed to produce the world's cheapest car.

The car maker has also threatened to end the project in Singur, an hour's drive from Kolkata, if the protests continue.

"We have already acquired 4,800 acres of land for the project," vice chairman and managing director Sajjan Jindal said.

JSW will set up a 6-million-tonne steel plant in phases and 300 megawatt captive power plant. The project, to be implemented through its Bengal unit, would be funded through a mix of debt and equity.

The first phase of the project would start operations in 2011-12, he told reporters on the sidelines of an industry conference.

It has plans to raise capacity to 10-million-tonnes going forward. Total project cost is estimated at 350 billion rupees.

"The boundary wall is being put up surrounding the project area," Jindal said.