JSW Steel recorded a 25 per cent increase in crude steel production in May at 7.24 lakh tonnes (lt) against 5.77 lt recorded in May 2011.

Capacity utilisation at the company's Vijayanagar plant in Karnataka was at about 80 per cent in May, following constraints in availability of iron ore in the State, said a statement issued by JSW Steel on Tuesday.

Production capacity

The Vijayanagar Works has an annual production capacity of 10 million tonnes.

In 2011, the Supreme Court banned iron ore mining in three districts of Karnataka, citing environmental concerns and asked a government body to carry out an environmental impact assessment.

It later allowed state-run NMDC to mine up to one million tonnes per month from its captive mines in the State and conduct an e-auction to sell iron ore to steel companies.

JSW Steel's flat product output rose 31 per cent to 5.12 lt (3.90 lt) in May.

Long product production jumped 27 per cent at 1.49 lt (1.17 lt). Flat products are largely used in white goods and automobile sector. Long products find use in infrastructure and real estate projects.

JSW Steel shares on BSE were up 0.43 per cent at Rs 641 on Tuesday.

> suresh@thehindu.co.in

comment COMMENT NOW