JSW Steel to invest Rs 7,500 cr to expand Vijayanagar unit

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Mumbai | Published: June 28, 2018 12:39:42 AM

The company will also set up a 1.5 MTPA coke oven plant at Vijayanagar to bridge the current and expected gaps in coke availability and is likely to be commissioned by March 2020.

JSW Steel to invest Rs 7,500 cr to expand Vijayanagar unit

JSW Steel plans to invest Rs 7,500 crore on capacity expansion and upgradation of projects at its Vijayanagar Works plant in Karnataka, taking the annual steel manufacturing capacity at the facility to 13 million tonne per annum (MTPA) by March 2020, from the current 12 MTPA.

As part of the plan, the company has also launched various other upgradation and augmentation projects which are expected to result in substantial cost savings in operations over the next few years.
It includes the ongoing revamp and upgradation of capacity of blast furnace to improve hot metal availability, modification and enhancement of capacity of its steel melting shop, the flat and long products mills, along with allied facilities to utilise this additional hot metal.

The company will also set up a 1.5 MTPA coke oven plant at Vijayanagar to bridge the current and expected gaps in coke availability and is likely to be commissioned by March 2020.

The capacity augmentation plan is part of the company’s enhanced capex programme announced last month. JSW Steel had said that the company is enhancing its brownfield expansion programme and increasing the capex investment to Rs 44,400 crore by March 2020.

This was an increase of Rs17,600 crore in its capex plan in addition to the over Rs 26,800 crore that it already had in place. The Sajjan Jindal-led steelmaker had said that it is foreseeing an increase in demand from most end user industries and also rise in requirement from growing infrastructure sector in the country. The capex is to be funded with Rs 25,000 crore of debt and Rs 19,000 crore of cash accruals of the company.

Meanwhile, the company also said that it has commenced operations at two iron ore mines Tunga and Nandi in Karnataka for which it has already received statutory clearances. The cumulative capacity of these two iron ore mines is 0.71 MTPA.

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