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Read more about JSW Steel seeks land, green nod for 2,980-acre mega steel plant at Paradip on Business Standard. JSW Steel is also scouting for three stressed assets and bidding for Bhushan Steel and Bhushan Power & Steel and Monet Ispat which are all at the NCLT
mega steel plant at Paradip
The Sajjan Jindal-controlled JSW Steel has sought permission to acquire 2,980
acres to set up a mega steel plant at Paradip in Odisha and has also sought the
green nod for the same.
"We have applied for 2,980 acre to set up a steel plant and are awaiting the final
approval from Odisha. We are also seeking forest clearance for the plant at
Paradip. We will decide on capacity of the plant once we have approvals in hand,"
JSW Steel joint managing director and group CFO Seshagiri Rao told PTI.
JSW Steel, which is first time entering mineral rick Odisha state, had originally
proposed to set up a 10 mtpa capacity shore-based steel plant. The state is
expected to hand over the land it had acquired originally for a 12 mtpa steel
project proposed by POSCO at Jagatsinghpur district.
Rao refused to divulge investment details saying that will be finalised after the
The Korean steel giant had in 2005 announced a Rs 520 billion (Rs 52,000 crore)
investment to set up a 12 million tonne plant but due to land acquisition issues
abandoned the same after waiting for more than a decade.
JSW Steel is in expansion mode and is also evaluating various opportunities for
acquisitions to achieve the target of becoming 40 mt by 2030, Rao said.
JSW Steel is also scouting for three stressed assets and bidding for Bhushan Steel
and Bhushan Power & Steel and Monet Ispat which are all at the NCLT.
"We are actively looking at Bhushan Steel, Bhushan Power & Steel and Monnet
Ispat & Energy. We have already submitted the resolution plan for Monnet Ispat
and finalise bidding process for Bhushan Steel and Bhushan Power & Steel," Rao
Bhushan Steel, Bhushan Power & Steel and Monnet Ispat are among the first list
of 12 large companies which were referred by the Reserve Bank to the National
Company Tribunal Law (NCLT) for insolvency proceedings.
Monnet Ispat, the flagship of the Monet Group, has a sponge iron unit with a
capacity of 1 lakh tonne per annum.
It also has an integrated steel plant in Raigarh in Chhattishgrah with HR coil
capacity of 1.5 mt.
Bhushan Steel owes an amount of Rs 444.78 billion (Rs 44,478 crore) to its
lenders. According to the information on Bhushan Steel website, it is the third
largest secondary steel producer with an existing steel production capacity of 5.6
Commenting on expansion plans, Rao said the companys doubling of steel making
capacity from 5 mtpa to 10 mtpa is expected to be commissioned by March 2020.
The expected project cost is Rs 150 billion (Rs 15,000 crore) implying capital
outlay of $470 per tonne.
It is also expanding its Vijayanagar CRM complex capacity from 0.85 mtpa to 1.8
mtpa expected to be commissioned by September 2019. The project cost is
estimated at Rs 20 billion (Rs 2,000 crore), he said.
To cater to the growing market of tinplate for packaging industry, the company is
setting up a tinplate mill having 0.2 mtpa capacity at Tarapur in Maharashtra at an
estimated cost of Rs 6.5 billion (Rs 650 crore).