- Corporate News
Jindal Steel and Power expects 10-12% growth in Indian steel consumption
betwee FY 2010-11 and FY 2014-15
Jindal Steel and Power expects India's steel consumption to growsignificantly in the coming years as per capita finished steel consumption is far less than its regional counterparts. The company indicated that India's demand for steel is expected to grow at a CAGR of 10-12% in the financial year 2010-11 to financial year 2014-15.
To capitalise on the rising demand for steel, JSPL plans to set up of steel plants in Angul (Orissa) and Patratu (Jharkhand). It has set up 0.6 MTPA wire rod mill and 1.0 MTPA bar mill at Patratu, which werecommissioned in March 2010 and March 2011 respectively.
The company plans to increase its sale through MoU customers and byselling value-added products and increase its market shareparticularly in structurals, plates, TMT rebars and Wire Rods. The company is also setting up additional stock yards and marketing offices in India to enhance its geographic reach and to be in proximity to customers.
JSPL has commissioned 270 MW (2x135MW) phase-I out of 600 MW (4x150 MW) power project at Dongamahua, Chhattisgarh and this will meet the additional power requirements of the Company. Units under phase-II will be commissioned during the current fiscal. The setting up of captive power plants is part of the integrated steel plants being set up at Angul (Orissa) and Patratu (Jharkhand) for meeting their power requirement.
JSPL has captive iron ore and coal mines, but considering the rising demand for its future requirements, it is consistently making efforts for seeking allotment of such mines/ raw material linkages fromthe Central/ State Governments.
The company is investing in India India's power sector through its subsidiary, Jindal Power Limited (JPL), which along with its subsidiaries are planning to set up thermal and hydro power projects in various parts of the country with an aggregate power generation capacity of 10,480 MW.
Major projects under implementation in JSPL include:
Captive Power Plant in Raigarh, Chhattisgarh: Under Phase - II, 270 MW (2 x 135 MW) captive power plant, is being set up at Dongamahua, Raigarh. Environment clearance and consent to establish have been obtained. Complete BOP packages like CHP, AHP and Water Treatment Plant, Switchyard, C&I Packages etc. havebeen awarded to different vendors. Target date for the synchronisation of the Unit I of Phase II is September 2011 and for Unit II is December 2011.
Steel Plant in Angul, Orissa: JSPL is at an advanced stage of implementation of this project. All major orders for engineering, equipment supply and construction works have been placed. Out of 4,331 acres of land required for the project, 4,067 acres of landhave already been acquired. The following facilities are being set up viz., plate mill (1.5 MTPA), coal gasification plant (225,000Nm3/hr), sponge iron plant (1.8 MTPA), steel melting shop (1.64 MTPA), slab caster (1.62 MTPA), oxygen plant (2x1200 TPD), lime and dollime plant (2x500 TPD), coal washery (2x600 TPH) and captive power plant (6x135 MW). Target date of commissioning of the steel plant is March 2012.
3. Steel plant in Patratu, Jharkhand: JSPL is setting up an integrated steel plant in Patratu in the state of Jharkhand with the following key facilities viz. Blast Furnace (10,000 TPD), Sinter Plant (5.04 MTPA),Coke Ovens (1.70 MTPA), billet caster (2 X 8 strands), Oxygen Plant (2 X 1300 TPD), Lime & Dollime Plant (3 X 600 TPD), BOF Shop (2 X 180/200 Tons). Orders for major technological packages have been finalised/are in the advanced stages of finalisation. The steel plant isexpected to be commissioned in second half of 2013.
4. Machinery Division, Raipur, Chhattisgarh: JSPL is expanding production capacity of this division from 5,100 to 10,000 metric tons per annum. During the year under report, two sheds were completed and the CNC machines have been commissioned enhancing theproduction capacity to 9,000 metric tons per annum. During the current financial year, two more sheds will be constructed in which cranes will be installed thereby increasing the production capacity to 10,000 metric tons per annum. This division is capable of manufacturing equipment for steel melting shop, blast furnace, spongeiron plant, sinter plant etc. The production capacity of foundry division has been increased to 4,600 metric tons. Work for setting up of Pressure Vessel Division with production capacity of 2,500 metric tons per annum is going ahead and sheds have been completed.
5. El-Mutun Iron Ore Mine, Bolivia: Jindal Steel Bolivia S.A (JSB), a subsidiary of the Company, has been allotted land for setting up of an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA iron ore pellet plant and a 450 MW power plant. EIA clearance for mining and beneficiation plant has been obtained and the mining activity is progressing smoothly. Engineering consultant for the project has been appointed. All major packages for the project are in the process of finalisation. The dispatch of the ore being produced isexpected to start in the current year.
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India Infoline Research Team / 08:41, Oct 09, 2015
The Indian market too is expected to get off to a positive start. The Nifty looked geared to rally towards the 8300 mark but indices took a breather on Thursday.