JSW Steel to spend up to Rs 24,000 crore on expansion amid India's infra boom

JSW Steel, the country's biggest steelmaker by capacity, plans to spend as much as Rs 24,000 crore in the current financial year, Bloomberg reported on Thursday. The company will raise capital expenditure by nearly 50% as the country's infrastructure push drives steel demand and expansion plans.

The company said it aims to increase steelmaking capacity to 48.8 million tonnes annually by 2030, up from 31.9 million tonnes now. The expansion plans come as the Centre accelerates spending on highways, ports, airports and logistics networks to support economic growth and its goal of making India a developed economy by 2047.

JSW Steel's board has also approved a 5 million tonnes-per-annum brownfield expansion at one of its steel subsidiaries. The project will involve capital expenditure of Rs 26,000 crore and is scheduled for commissioning by the 2030 financial year.

Despite the strong earnings and expansion outlook, the company flagged risks from the ongoing conflict in the Middle East, saying higher energy prices and supply disruptions could weigh on growth.

"Prolonged supply chain disruption and consequent inflation due to the Middle East crisis could be a key risk to growth," the company said in a statement.