Jindal Vijayanagar Steel aims 10mt prod by 2010

Jindal Vijayanagar Steel, which was on the process of getting merged with Jindal Iron & Steel Company (JISCO) to form JSW Steel, was aiming at a production of 10 million tonnes by the year 2010.

The sources close to Jindal Vijayanagar Steel source said that the company had prepared a corporate plan for the year 2010, which envisages ramping up of capacity from the present 2.4 million to 10 million tonnes per annum by the turn of the present decade.

The company would initially expand capacity by 1.2 million tonnes in the next 12 months, followed by setting up a new plant having a capacity of 6.4 million tonnes in the state of Karnataka, the sources said.

The financing pattern of the new steel plant would depend upon the technology it would adopt, the sources said adding that everything would be finalised at the forthcoming board meeting of the merged entity.

The company is one of the largest exporter of galvanised steel from India.

For the purpose of new plant, the company had taken over a vacant plot from Mukand, which was supposed to put up a plant there.

Besides setting up the plant, the company was also looking at acquisitions within the country to increase its capacity beyond 10 million tonnes. Earlier, Jindal Viajayanagar had taken over Southern Iron & Steel Company (SISCO).

Asked about the financial performance of the company, the source said that turnover of the merged entity would be in the region of Rs 6000 crore for the fiscal 2004-05.