Mumbai, Jan. 8: The Rs 1,419-crore Jindal Steel and Power (JSPL) is in an expansion mode. The company is planning a massive investment of Rs 2,595 crore to expand its steel and power capacity.

JSPL has signed a memorandum of understanding (MoU) with the Chhattisgarh government for setting up a clean-type coke oven, a sinter plant, blast furnace, steel melting shop, plate mill, rolling mill for manufacturing rebar and wire rod, apart from a power plant and other utilities at Raigarh.

Under the agreement, the state government will provide all ?necessary help in seeking clearances from state and central departments to implement the projects.

Speaking to The Telegraph, wholetime director (finance) Sushil K. Maroo said post-expansion, the steel capacity of the company will go up by over 1 million tonnes. The company may go in for a debt equity ratio of 1.5:1 to fund the expansion plan. JSPL will approach banks and financial institutions after preparing a detailed project report, he added.

JSPL, a leading producer of coal-based sponge iron, had commissioned a 1.65 lakh-tonne sponge iron kiln and a 25-mw captive power plant six months ahead of schedule in the second quarter of this fiscal.

The company had earlier announced that by 2006, its steel making capacity will be raised to 2.9 million tonnes, while the capacity of the coke oven plant will be expanded to 0.8 million tonnes. For 2007, the plan is to enhance capacities of its plate mill and wire rod mill among others.

The company has aggressive plans for the power sector as well. It has promoted Jindal Power Limited (JPL), which will set up a 1000 mw power project at Raigarh.