JSW Steel Ltd, the country?s fourth largest integrated steel manufacturer, started its 3 million tonne expansion project at its plant in Vijaynagar on Friday. The expansion project would entail an investment of Rs 7,000 crore. Once completed, this facility will be able to produce 10 million tonne, making it the largest single-location steel facility in the country. The project is expected to be completed by 2010.
At present, the Vijayanagar plant has an installed capacity to produce 6.87 million tonne of steel. The project would include setting up the largest blast furnace in India.
Out of the Rs 7,000 crore, Rs 2,000 crore will be funded through internal accruals and the balance through a mix of foreign currency convertible bonds, Euro bonds, foreign currency loans, structured finance products and rupee loans.
Sajjan Jindal, vice chairman & managing director, JSW Steel, said, ?India?s thrust on infrastructure development will continue to drive the demand for steel in the coming years. The growing fixed asset investments in the emerging economies will see a growing demand for steel. Moreover, the rural markets in India are yet untapped for their potential. We see a huge opportunity for growth in this market.?
Apart from this brownfield expansion, the company is setting up a Rs 35,000 crore, 10 million tonne plant in Midnapore, West Bengal, the land acquisition for which is nearly complete. In its first phase, a 3 million tonne capacity will be set up at an estimated cost of Rs 10,000 crore. The company has also announced another Rs 35,000 crore, 10 million tonne project in Jharkhand, which it plans to set up simultaneously along with the West Bengal project.
The inauguration was attended by over 180 delegates from India and abroad, which included officials from Siemens VAI, Danielli Corus, Posco, SMS-Demag, Mecon, and Outokumpu. JSW is also planning to take over 3 ITIs at Vittalapura, Hospet and Kudligi in collaboration with the government to give a fillip to technical education.