Mumbai: JSW Steel on Wednesday announced plans to invest Rs 7,500 crore until March 2020 to increase the production capacity at its Vijayanagar facility in Karnataka to 13 million tonnes per annum (mtpa).
The plant, which currently has a 12-mtpa capacity, is the largest single-location steel manufacturing unit in India, the company claimed in a release.
"We plan to expand the steel manufacturing capacity of the Vijayanagar unit in Karnataka to 13 mtpa by FY20," the release said, adding, the capacity expansion and project upgrades will entail a capital investment of Rs 7,500 crore until March 2020.
JSW Steel said its current project to revamp and upgrade capacity of blast furnace-3 at the Vijayanagar plant is on track, which will improve hot metal availability.
It will also modify and enhance capacity of its steel melting shop, the flat and long products mills, along with allied facilities to utilise this additional hot metal.
The company also plans to set-up a 1.5-mtpa coke oven plant in Karnataka to bridge the current and expected gaps in coke availability, which is likely to be commissioned by March 2020, according to the release.
It expects the coke oven unit to provide significant cost savings over the long term.
"With steel consumption in India expected to grow, these capacity enhancement initiatives will ensure our readiness to promptly service emerging customer demand," said Vinod Nowal, deputy managing director, JSW Steel.
Meanwhile, the company on Wednesday also announced that it has commenced operations at Tunga and Nandi iron ore mines in Karnataka, for which it has already received statutory clearances. The cumulative capacity of these two iron ore mines is 0.71 mtpa.
For the remaining three mines of the five acquired by the company last year, JSW Steel expects statutory clearances and approvals during the current financial year.
The steel-maker is also expanding the capacity of CRM-1 complex at Vijayanagar works from 0.8 mtpa to 1 mtpa as well as setting up a 0.3-mtpa colour coated line as part of its growth strategy, the release said.
Updated Date: Jun 27, 2018 15:52:54 IST