New Delhi, July 7
Headed by Chief Minister Naveen Patnaik, Odisha’s State High Level Clearance Authority approved the expansion of Jindal Steel and Power (JSPL) Angul plant to produce 25.2 million tonnes per annum against an investment of ₹24,652 crore.
The plant has an existing capacity of 6 million tonnes per annum, and had an approved proposed capacity of 18.6 million tonnes. The investment will generate potential employment opportunities for over 1,000 people, an Odisha government statement said.
“This investment will take JSPL’s total investment to ₹1,00,670 crore (over the next ten years), making it the largest single location steel plant capacity in the world,” the statement said.
Buoyed by sustained high steel prices, manufacturers have been moving onto new investments this year. Including the Angul plant expansion, the Odisha authority on Tuesday approved five major industrial projects to the tune of ₹1,46,172 crore in the steel manufacturing sector.
Andhra Pradesh State Investment Promotion Board, last month, also gave its nod for the allotment of 860 acres of government-owned land adjacent to Krishnapatnam Port to a JSPL subsidiary for the construction of a new steel plant.
JSPL Q1 production falls
JSPL on Wednesday reported a 3 per cent sequential decline in steel production at 2.01 million tonnes for the June quarter. “Conscious decision by the company to divert oxygen towards saving precious human lives led to production getting impacted slightly,” a company statement said.
Sales also fell by 16 per cent quarter-on-quarter to 1.61 million tonnes. As the domestic economy took a hit due to the second wave of Covid during the quarter under review, the share of exports in sales rose again to 34 per cent, up from 27 per cent in the previous quarter.
“Exports were, however, impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 1.5 lakh tonnes currently remains stuck at port, which will be shipped as soon as the logistical bottlenecks are removed,” JSPL said.
In the month of June, production stood at 0.64 million tonnes, while exports accounted for 44 per cent of the sales volumes.
“We aim to produce 8.0-8.5 million tonnes of steel in financial year 2021-22 in line with our core philosophy of nation building and working towards a self-reliant India,” VR Sharma, Managing Director, said in the statement. “We also aim to reduce our overall debt to ₹9,900 crore by the end of this financial year.”