JSW Steel earmarks Rs 15,000 cr to set up 5 MTPA capacity in Vijayanagar by FY24

JSW Steel on Friday said it has earmarked an investment of Rs 15,000 crore to set up 5 million tonne per annual (MTPA) steel-making capacity at its integrated plant in Vijayanagar, Karnataka.

Union Steel Minister Ram Chandra Prasad Singh laid the foundation stone of the project at the company's Vijayanagara unit in the presence of JSW Steel Chairman Sajjan Jindal, along with other government and company officials. This brown-field expansion project is being undertaken through JSW Vijayanagar Metallics Ltd, a wholly owned subsidiary of JSW Steel Ltd (the flagship business of $13 billion JSW Group), the company said in a statement.

"The company has earmarked a capex (capital expenditure) of Rs 15,000 crore for this expansion and is expected to be completed by FY24,'' JSW Steel said further stated.

According to the statement, the expansion will cover an area of 600 acre and includes establishing 4.5 MTPA blast furnace, two steel melt shops of 350 tonnes each, and a 5 MTPA hot strip mill along with other allied and auxiliary facilities.

The JSW Steel Vijayanagar Works is the largest single-location integrated steel-making facility in India with a current capacity of 12 MTPA (million tonnes per annum).

The company is undertaking an optimisation process of the current facility which will enhance the capacity to 13 MT in the next 12 months. After the completion of the brownfield (existing) project, the company's total installed capacity in Vijaynagar will reach 18 MTPA.

JSW Steel Chairman Sajjan Jindal said, ''The expansion reiterates our commitment to being a significant partner in building a stronger India through sustainable means. The project is aligned to our sustainability goals and focus on a circular economy by optimising our water, waste, carbon and energy footprint.'' 

He said the company will efficiently execute this brownfield expansion by leveraging its strong project capabilities and track record.

JSW Steel said the environmental clearance (EC) for the project has already been received from the Ministry of Environment, Forests and Climate Change. A preliminary clearance from the 'Single Window High-Level Clearance Committee' (SHLCC), the Government of Karnataka, has also been secured.

JSW Steel is the flagship business of the diversified $13-billion JSW Group, which has a presence in sectors such as energy, infrastructure, cement, paints, sports and venture capital.

Shares of JSW Steel ended Rs 674.50 apiece on BSE today.