JSW Steel Ltd plans to establish a coke oven plant of 1 million tonnes per year capacity and a pellet plant of 4 million tonnes/annum at JSW Ispat Steel (JISL) Ltd's Dolvi steel complex. The move is expected to help accelerate the turnaround of JSW Ispat.

An investment of about Rs 660 crore in various projects including enhancement of lime production, railway siding, gas-based power plant and cold-rolling facility at Dolvi is also on the anvil, both by the parent company and by JISL.

JISL said its lime production capacity was 600 tonnes per day (tpd) while the requirement was over 1,200 tpd and this was expected to rise to around 1,800 tpd once the steel-making capacity was hiked to 5 MTPY.

To meet the need for lime, it was planned to set up a lime calcining plant of 600 tpd capacity at Dolvi at an estimated cost of Rs 75 crore. A railway siding facility adjacent to Dolvi steel complex is planned to be commissioned in 15 months at an investment of Rs 90 crore.

Gas-based power plant

The company said that to ensure regular supply of power and save costs, a gas-based power plant of 55 MW capacity using waste gas being generated by the blast furnace as feed-mix has been proposed at a cost of about Rs 155 crore.

The project is expected to be commissioned in 18 months. A second colour coating line at its Kalmeshwar complex on an investment of Rs 40 crore has been proposed. Significantly, all these projects of JISL are to be financed through internal accruals.

With a view to ensuring raw material integration and save input costs, JSW Steel plans to set up a coke oven plant of 1 million tonnes per annum capacity and a pellet plant of 4 mtpa capacity at the Dolvi steel complex. This would protect JISL from market risks in sourcing quality coke and pellets for its steel-making operations.

The coke oven and pellet projects are likely to be commissioned in 24 months and 21 months, respectively. However, the investment outlay for both the projects was not specified.

Cold-rolling facility

JSW Steel Ltd has also proposed to establish a 0.8 million tpa cold-rolling facility at the Dolvi steel complex to augment JISL’s efforts to capture downstream opportunities. 

The project is expected to cost around Rs 300 crore and is likely to be commissioned within 18 months.

For treating one of the units (300 MW) of JSW Energy Ltd at Ratnagiri, Maharashtra, as a captive unit for supply of power, the company has invested Rs 163.29 crore in the shares of JSW Energy Ltd and will enter into an ‘Energy Wheeling Agreement’ for long term power supply.

JSW Steel Ltd has pumped in Rs 2,157 crore in JISL by way of subscription of equity shares in JISL. JSW Steel also had, through an open offer, further acquired 8,99,40,890 shares, enabling it to takeover management control of the company. The infusion of funds by JSW Steel has enabled JISL to meet its long-term working capital requirements and achieve savings in interest costs, the directors of JISL said in their annual report for 2010-11.