JSW Steel cuts output
Read more below
- Published 27.09.11
Calcutta, Sept. 26: JSW Steel has gone for a deep production cut at its Vijayanagar plant in Karnataka because of an abrupt disruption in iron ore supply.
“JSW Steel has been compelled to scale down its production to 30 per cent from Saturday after an apex court order said iron ore produced by NMDC would be sold through e-auction by the monitoring committee irrespective of long-term contracts,” the company said.
“The abrupt disruption of supplies to JSW Steel by NMDC cut the lifeline to run the furnaces in safe condition,” it added.
The Vijayanagar plant has a capacity to produce 10 million tonnes of steel per annum.
The move comes following an apex court order last Friday which said that even supplies of iron ore by state-run NMDC from its mines in Karnataka will be done through the e-auction route only.
According to sources, NMDC had stopped supplies to JSW Steel on Friday itself.
The JSW Steel scrip fell 2.26 per cent to Rs 618.45 on the BSE today.