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JSW Steel to augment capacity of Vijayanagar plant after 2020

Wednesday, 05 Jun 2019
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JSW Steel has envisaged plans to augment capacity of its integrated steel plant at Vijayanagar in Karnataka to 18 million tpa. The plan however will be taken up only after 2020.

The Vijayanagar plant currently has 12 million tpa capacity. The company will first execute the expansion of its Dolvi unit in Maharashtra from five million tonne to 10 million tonne.

The company will also stabilise the two newly acquired steel plants from the National Company Law Tribunal (NCLT) by 2020, which will ramp up its installed capacity to 24-25 million tonne from the existing 17 million tonne.

JSW Steel was also expecting the handover of Bhushan Power and Steel, which operates 3.5 million tonne steel plant in Odhisa. With five million tonne from Dolvi and takeover of Bhushan and Monnet, the company expects the capacity to become 24-25 million tonne by 2020. Then the expansion of Vijayanagar will be taken up. JSW Steel has also planned a capex of Rs 15,700 crore for FY20.

With the fresh approval of Rs 5,700 crore, it is now implementing a cumulative capex spend of Rs 48,715 crore over FY18-FY21. The new approval of Rs 5,700 crore investment was mainly to be utilised for downstream investment for about Rs 1,000 crore, Rs 2,200 crore towards cost-saving projects and Rs 2,000 crore for mining.

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