1.2 mt steel plant in Orissa

Jindal Stainless Ltd, a part of the O P Jindal Group, has drawn up plans for an integrated stainless steel project in the Jajpur district of Orissa.

To be built in two phases, the plant will have a capacity of 1.2 million tonnes a year.

"With its existing 500,000 tonnes a year capacity, this should make the company one of the top five stainless steel producers in the world," Ratan Jindal, vice-chairman and managing director of Jindal Stainless, told Business Standard.

The first phase of the project is under way already, and includes a 160,000 tonnes a year liquid ferrochrome project "" the largest in the country "" and a melting project for 600,000 tonnes of stainless steel slabs.

While the ferrochrome project is expected to be ready 15 months from now, the rest will take another 15 months.

"We have already placed an order for furnaces for the ferrochrome project with SMS Demag," Jindal added.

However, the company is still looking at various technology options for the melt shop.

While the ferrochrome project is likely to cost Rs 150-160 crore, the melt shop, including the slab caster, is expected to cost Rs 300-400 crore. Jindal plans to finance the project equally through internal accruals of Jindal Stainless and debt.

The company is also considering a captive power plant of 120 mw, though a decision is yet to be taken.

"The Orissa government has offered us very attractive rates for power," Jindal said. The power project will cost the company another Rs 250-300 crore.

Meanwhile, Jindal Stainless has applied for mining leases for chrome ore, iron ore as well as coal.

Jindal plans to use 50 per cent of the slabs produced in the Orissa plant for in-house consumption at Hissar in Haryana, where the HR rolling capacity of 800,000 tonnes is higher than the slab production capacity (500,000 tonnes). The rest will be exported.

"Our prices are very competitive. Located only 80 km from the Paradeep port, we can export to anywhere in the world. But going by the country's growth trend in the demand for stainless steel, we may not be able to export much," Jindal pointed out.

The second phase of the project, which will be taken up five years from now, will double the capacities of the current project. In addition, the firm will put up an HR-rolling capacity of 1 million tonnes in the second phase.