Calcutta, Nov. 14: Jindal Steel and Power Ltd (JSPL), the flagship company of the Jindal group, is working on a massive expansion plan to raise its total volume of output from 7.5 lakh tonnes to 12 lakh tonnes. The company is likely to invest around Rs 550 crore to fund the expansion project.
Speaking to the newspersons here today, V. Gujral, vice-chairman and CEO, said the company is poised to become one of the largest sponge iron units in the world after implementing the expansion programme.
“We are currently producing around 15,000-20,000 tonnes of products per day which is very good for the initial phases by any standard. We are hopeful of stabilising all our units shortly before we go for expansion,” he said.
JSPL has an integrated steel plant at Raigarh district in Chattisgarh where it has already invested over and above Rs 1,200 crore. It is planning to set up another unit in Orissa, for which it has applied for a mining lease. “We are ready from our side for the sponge iron plant in Orissa. Now we are waiting for the memorandum of understanding to be signed between us and the Orissa government for the proposed project,” he said.
JSPL is also coming up with a sophisticated rail mill at the Raigarh plant where it will manufacture 120-metre long rails, the longest among all rail producers in the country.
A senior JSPL official said a major benefit to consumers like Indian Railways will be that the rails will require less number of welds, thus making it more stronger and safer.
The company has plans to commission the rail mill very shortly.
JSPL is expected to cross Rs 1,000-crore turnover mark in the current financial year. It has already reported a turnover of Rs 587 crore in the first half of the current fiscal compared with a turnover of Rs 409 crore in the corresponding period last year.