Corporation tax cut: JSW Steel eyes special purpose vehicles for expansion

JSW Steel has a long-term goal of achieving a capacity of 40-45 mt through a mix of brownfield and greenfield projects

JSW Steel may consider setting up special purpose vehicles (SPVs) for expansion to take advantage of the government’s corporation tax incentive.

JSW Steel’s Joint Managing Director and Group Chief Financial Officer Seshagiri Rao said the company would consider this alternative model for any future expansion beyond 13 million tonnes (mt) at Vijayanagar and 1 mt each at Salem and 10 million tonnes at Dolvi.

“As and when we take up these projects, we will explore setting up separate SPVs because of the great incentive which is available in the form of a sharper reduction in corporate tax rate where the