The Hindu Business Line : ‘JSW hopeful of commissioning Vijayanagar plant ahead of schedule’

Visakhapatnam, March 13 The expansion project of the Jindal South-West Vijayanagar plant near Bellary is going on briskly and “we are hopeful of commissioning it ahead of schedule,” according to the Joint Managing Director and CEO, Mr Y. Sivasagara Rao.

The former CMD of the Visakhapatnam steel plant, said in an exclusive interview here on Thursday that during his tenure he had set the expansion project of the Vizag Steel in motion by awarding the major contracts.

“However, I could not stay here till its completion. Now, I am overseeing the expansion project of the Vijayanagar plant. “At present, the plant produces 3.5 million tonnes of hot metal and it will go up to 6.8 million tonnes or 7 million tonnes after expansion, scheduled to be completed by next March. “But we are striving hard to complete it ahead of schedule by at least five to six months. I am very bullish on the project,” he said.

Captive iron ore mines

The company had applied for captive iron ore mines for the expanded capacity, he said.

“Now, we have captive ore mines to the extent of 15-20 per cent of our production.

“But we are optimistic that the Karnataka Government will grant mines in future,” he added. He said that a cold rolling mill with a capacity of one million tonnes had been set up in the Vijayanagar plant at a cost of Rs 1,100 crore and “it will be formally inaugurated on March 17.”

Expansion cost

He said that simultaneously work had started on expanding the capacity of the steel plant to 10 mt and orders had been placed.

“The total cost of the expansion project will be Rs 15,000 crore and it is scheduled to be completed by September, 2010. But I am sure expansion to 10 mt too will be completed ahead of schedule,” he explained.

Bengal land acquisition

He said the company was also setting up a steel plant in West Bengal at Salboni in Midnapore district and the land (4,500 acres) acquisition had been completed.

The work would start soon on the project. Another steel plant would be set up in Jharkhand.

“Land acquisition is going on for the Jharkhand plant and the State Government has allocated captive iron ore mines,” he said.

The Union Government should immediately impose a ban on iron ore exports.

“We must conserve our ore for future requirements, as China is doing,” he added.

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