Jindal Steel and Power Ltd (JSPL) will be investing about Rs 24,000 crore by the end of 2014-15 fiscal to complete its ongoing expansion and start work on next phase of capacity addition, a top company official said.
“This year we have a capital expenditure target of Rs 12,000 crore for both steel and power together. Next year, it will be about Rs 11,000-12,000 crore, so it will be about Rs 24,000 crore investment in 2 years,” Ravi Uppal, Managing Director and CEO, JSPL said.
He added that the company will be completing the current phase of expansion for both of its primary ventures — steel and power — and after stabilisation the new facilities will begin production in full steam by next year.
Accordingly, the company will be commissioning new steel mills in Odisha’s Angul and in Oman and a new power plant of 2,400-MW capacity in Chhattisgarh’s Tamnar.
Together with completion of current phase of expansion, JSPL is also gearing up for doing preparatory work on its next phase of expansion, Uppal said, adding that his focus is on beginning phase-II of Angul steel plant and a 1,320 MW power plant in Jharkhand’s Godda.
“This year most of the money which we have earmarked is remaining part of Tamnar (power plant), remaining part of phase—I execution of Angul (steel plant) and start up of Godda, plus our Mozambique mines. Next year, it will largely be Angul phase-II and Godda power project,” he said.
After the completion of current phase of expansion, JSPL will have steel production capacity 7.5 million tonnes per annum (MTPA) from existing 3.5 MTPA, while its power generation capacity will increase to 5,000 MW from existing 2,500 MW.
Uppal said that JSPL is now focusing on completing its expansion projects one by one and any new investment plan will be taken up only after completing the existing tasks.
Accordingly, the company aims to complete the current phase of expansion, upgradation and stabilisation by March, 2015. Then it will go for expanding Angul steel plant’s capacity by another 4 MTPA, expansion of Patratu and Raigarh plants and adding some new power plants.
Indicating a shift in company’s strategy, the MD of JSPL said that his firm has now started looking at locations in Southern India, particularly in Andhra Pradesh and Tamil Nadu to set up power plants and the company aims to have 10,000-MW capacity by 2020.
Till now, the company has set up power plants nearby its steel mills, whether it is Raigarh and Tamnar, or Angul or Patratu and Godda. Besides, now it is planning to set up all large power projects only, having units of 600 MW or above.
“We are working on some other power projects but they are at early stages. Our idea is to have 10,000 MW plus capacity by 2020. There could be Patratu and couple of other locations in South, Andhra, Tamil Nadu...,” he said.