JSW Steel to invest Rs 7,500 cr on expansion in Ballari

JSW Steel to invest Rs 7,500 cr on expansion in Ballari

Vinod Nowal, Deputy Managing Director, JSW Steel

India's largest steel producer JSW Steel, a part of the $13 billion JSW Group, on Wednesday announced its plans to increase the annual steel manufacturing capacity to 13 million tonnes per annum (MTPA) at its Vijayanagar Works located at Toranagallu in Ballari district.

The company will be investing Rs 7,500 crore on the expansion of the capacity from the present 12 MTPA, which will be completed by March 2020, its deputy managing director Vinod Nowal said in a statement.

As part of the expansion, JSW Steel will revamp and upgrade capacity of blast furnace-3. The company will modify and enhance capacity of its steel melting shop, the flat and long products mills, along with allied facilities to utilise this additional hot metal. With the completion of the expansion, the crude steel capacity of JSW Steel in Karnataka will increase to 13 MTPA.

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 coke oven plant is expected to provide significant cost savings for the company over the long run.

"With steel consumption in India expected to grow these capacity enhancement initiatives will ensure our readiness to promptly service emerging customer demand,” Nowal said.

JSW Steel has also commenced operations at two iron ore mines (Tunga & Nandi Mines) in Karnataka for which it has already received statutory clearances. The cumulative capacity of these two iron ore mines is 0.71 MTPA. The annual production capacity of the five mines acquired by JSW Steel, through 2017 auction, is approximately 4.66 MTPA. Once all five mines are operational, they are expected to fulfill approximately 20% of the iron ore requirement of JSW Vijayanagar Works steel manufacturing unit.