JSW Steel, the country's third largest steel maker, has outlined an ambitious expansion plan that entails doubling capacity of its Vijaynagar plant to 20 million tonnes by 2022, according to its chairman and managing director, Sajjan Jindal.
The company is also investing Rs 2,000 crore in a 500-km pipeline to transport iron ore from its private port to the plant, the industrialist said, adding that the group has deferred plans of buying steel units in Italy.
"It is my dream to make Vijaynagar the largest plant in the world. Earlier, I wanted to make Vijaynagar the largest plant in India. Since we have already achieved it, our next target would be to make it the largest plant globally," Jindal told ET at a function to inaugurate the new headquarter for the Institute of Steel Development and Growth, a body jointly promoted by the steel ministry and domestic steel players.
"The expansion of Vijaynagar plant is due to take place in phases. We hope to achieve 20 mt capacity by 2022," Jindal said, adding that capacity will be raised to 12mt in "some time".
The group also plans to expand capacity at JSW Ispat's Dolvi unit to 15 mt, he said. "Our focus is on expanding in India and we have thus deferred our plans to invest in Italy, the industrialist said, when asked about the company's bid for steel units in Italy. JSW had bid for Lucchini, Italy's third largest steel group, and was also tipped to be in the race for the country's largest steelmaker, Ilva.
JSW's expansion plans come in the face of a severe crisis that affected the Vijaynagar plant when the Supreme Court banned iron ore mining in Karnataka in 2011.
In step with plans for adding capacity, JSW will invest in a 500-km slurry pipeline linking the Vijaynagar plant to JSW's Jaigarh port, located between Mumbai and Goa. "We will invest Rs 2,000 crore in the new pipeline project, which will help bring iron ore from the port to the plant. It will ensure savings of nearlyRs 2,000 crore a year on freight costs alone. With a capacity of 20 mt, JSW SteelBSE 0.44 % will require some 35 mt of iron ore every year for Vijaynagar alone.
Source: ET
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