JSW to set up downstream facility in BSALs land

Written by Smita Joshi Saha | Mumbai | Updated: Feb 1 2011, 03:55am hrs
Sajjan Jindal led JSW Steel, which is optimistic of winning the battle of taking over assets of Bellary Steel & Alloys (BSAL), said it plans to set up a downstream unit or a service centre on the 700 acres of land of BSAL. The company has paid Rs 210 crore to acquire the assets of debt-ridden BSAL, but has not got possession so far, as mining major Sesa Goa had recently secured a stay order from the Delhi High Court against the Industrial Financial Corporation of India's decision on the Bellary Steel sell-off.

Declining to give any specifics, Seshagiri Rao, joint MD and group CFO told FE, This unit is not far from our existing Vijaynagar plant and once we have the possession of the property, we can look at various alternatives, including (setting up) some downstream unit, some service centres, among others. There are various opportunities available with us to utilise this 700 acres of land.

He said, The land is 40 km away from JSWs Vijaynagar plant. However, this will not be utilised for expanding our capacity from 10 million tonnes (mt) to 16 mt, for which we have enough land at our existing location.

The steel major, which acquired debt ridden Ispat Industries in December last year, is also looking to reduce interest cost on refiancing the huge debt of Rs 7,500 crore in Ispat's books.