JSW eyes lion's share in ongoing coal, steel e-auctions

Firm aggressive in pursuing the five coal blocks located in Jharkhand

To secure raw material for its operations, domestic steel giant JSW Steel looks to grab the maximum number of coal blocks out of six being auctioned for the iron and steel sector.

The e-auction of six coal blocks, of which five are located in Jharkhand and one in Madhya Pradesh, for iron and steel making companies started on Friday. The e-bidding is scheduled to end on July 14.

A JSW Steel official, who did not wish to be quoted, said, "For Jharkhand, we are very aggressive. We have already announced a plant there and in Odisha. In Jharkhand, whatever is put on auction we will participate."

In the fifth tranche of coal block sale for the production of iron ore and steel, the government has put under the hammer five mines -- Brahmadiha, Choritand Tiliaya, Jogeshwar & Khas Jogeshwar, Rabodih OCP and Rohne -- located in Jharkhand.

JSW Steel has got environment clearance for a 10 million tonnes per annum (MTPA) capacity integrated steel unit and a 900 mw captive power plant to be built at an estimated cost of Rs 35,000 crore in Jharkhand.

The company last month said that it was pursuing various approvals and clearances for setting up the 10 MT project in phases.

To enhance its raw material security, the company had participated in the auction of iron ore mines last year too and won five iron ore blocks in Karnataka and one coking coal mine in Jharkhand.

Apart from bidding for coal mines in mineral-rich Jharkhand, the company will also bid for Urban North coal block in Madhya Pradesh, the source said.

"We are aggressive. We will try to win as much as we can," the source added.

Getting more blocks will further enhance the group's raw material security and lead to integrated and efficient operations, the source said.

JSW Steel has been looking aggressively to secure raw material like coal and iron ore for its plants.

Its board last month had approved a plan to set up a Rs 2,100 crore slurry pipeline in Karnataka to transport iron ore and coal for its 12 MT integrated steel plant in the state.

The company plans to spend Rs 26,800 crore to take its capacity to 23 million tonne per annum (MTPA) by March 2020, its Chairman Sajjan Jindal has said.

JSW Steel is one of the country's leading integrated steel manufacturers with a capacity of 18 million tonnes per annum.