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Jindal Steel & Power to expand Raigarh plant

Thursday, 05 Jun 2014
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Jindal Steel & Power (JSPL) envisages expanding the capacity of its steel plant in Raigarh, Chhattisgarh, in multiple phases, by 2020.

The capacity of the plant will be augmented from three million tonne to 10 million tonne. Along with this, JSPL is also planning to expand the capacity of the cement plant which is linked to the expansion of the steel capacity. The cement manufacturing capacity is expected to be increased from 0.5 million to two million tonne.

For the expansion plan, JSPL has earmarked an investment of Rs 5,600 crore. The expansion will be funded with a mix of internal accruals and partly debt in the ratio of 3:7. It, however, has not yet tied up finances for the same. Of the proposed investment, Rs 4,800 crore will be utilised for expansion of the steel capacity, and Rs 800 crore for the cement unit.

The company is ready with the blueprints and will start the expansion as soon as it obtains clearances.

In 2014, JSPL intends to increase its steel capacity to four million tonne apart from expanding its cement and brick business at the site.

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