JSW Steel today said it targets to double its production capacity to 16-million tonnes by 2014.
The steelmaker hopes to expand its capacity to 11-million tonnes from the present 7.8-million tonnes by March 2011.
"We have lined-up a capex of Rs 15,000-crore to have a 16-million tonne capacity from 11-million tonnes by 2014. JSW Steel will continue to expand its capacity in the future," JSW Steel Group's Joint Managing Director and Chief Financial Officer, M V S Seshagiri Rao, told reporters here.
"We will expand the capacity of our Vijaynagar plant to 10-million tonnes from present 6.8-million tonnes by March 2011," Rao said.
The company's plant in Tamil Nadu at present has 1-million tonne capacity.
JSW Steel hopes to begin construction of its 10-million-tonne steel plant at Salboni in West Bengal by 2011. "The work on the boundary wall has already started," he said.
More From This Section
The company sees an over 10 per cent consumption in the domestic market and hopes demand would pick-up in the future.
"We expect demand to pick-up in long products now onwards and consumption would be much better in the next six months," he said.
On pricing, JSW Steel's Director (Commercial & Marketing), Jayant Acharya, said, "Steelmakers are likely consider a price hike in October."
Owing to higher international prices and input costs, steel-makers across the board had raised prices in September and JSW Steel hiked prices by 3-4 per cent with effect from September 1.
"Demand from the auto, infrastructure and real estate sectors will continue in the coming quarters," Acharya said.
On the Mining Bill, Rao said, "It is a welcome step by the government. The Bill will help companies to set up greenfield projects."
Last week, a 10-member ministerial panel headed by Finance Minister Pranab Mukherjee arrived at a consensus on the Mining Bill, which makes it mandatory for companies to share 26 per cent of profits from mining with project-affected people. The Group of Ministers (GoM) will meet soon to clear the final draft of the Bill.
The new Bill has proposed that companies share 26 per cent of the profits from mining with locals whose land will be acquired for the project.