Naveen Jindal-led Jindal Steel and Power (JSPL) plans to expand its steel capacity to 10 million tonne (mt) from 3 mt at its Raigarh plant in multiple phases by 2020. The company plans to invest around R5,600 crore for upgradation and expansion at the plant.
The company plans to fund the expansion with the mix of internal accruals and partly debt in the ratio of 3:7. It, however, has not yet tied up finances for the same. The likely investment on the steel plant is seen at R4,800 crore and the cement plant is R800 crore. The cement plant expansion is linked to the expansion of the steel capacity. The cement manufacturing capacity is expected to be increased to 2 mt from 0.5 mt.
This year, the company will increase it's capacity to 4 mt for steel, apart from expanding its cement and brick business at the site.
"The earlier government was not friendly to the industry. With the new government coming in power, we are hopeful that we can see some changes in the policy in near term...if it happens, we definitely have a plan in store which we are holding at the moment and waiting for the government to respond positively," Pankaj Gautam, executive director-projects and operations, said.
“We are ready with the blue print and will start the expansion as we gets the clearances,” he added.
"Once we have more slag from another steel making capacity, then only we can think of raising cement production. Right now whatever is there, we want to utilise it fully and subsequently definitely the moment steel plant gets expansion, cement plant also will only expand," Gautam said.