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Jindal Steel and Power Limited (JSPL) has achieved full production capacity of 3 million tonne (MT) at its Chhattisgarh-based Raigarh plant for the first time after inception.
The Raigarh facility of the JSPL is the first plant of the company that is a part of the US$ 18 billion diversified O P Jindal Group. The JSPL is one of India's major steel producers with a significant presence in sectors like Mining, Power Generation and Infrastructure.
In 2005, the company went for an expansion plan and enhanced the capacity of Raigarh unit to 3 MT. It inked a Memorandum of Understanding (MoU) with the Chhattisgarh government for the project. But the installed capacity of production could never be achieved.
"In the financial year 2012-13 (that concluded March 31), we had succeeded in producing 3 MT of saleable steel that was a big achievement," Executive Director of JSPL Raigarh Atul K Misra said. Despite recession in the steel sector, the plate mill achieved 102 per cent production to its capacity, he added.Besides creating history with the record production, the JSPL Raigarh had also taken up measures for reducing the production cost. "It had yielded the desired result and Rs 90 crore had been saved," Misra said.
In the fiscal 2010-11, the JSPL Raigarh had produced 2.27 MT of steel while in 2011-12, 2.75 MT steel production was recorded in the plant. As of March 29, 2013 the JSPL Raigarh had produced 3 MT of steel and created history, Misra said, adding that the feat would propel the team JSPL to achieve new goals.The company is mooting a major expansion project for the Raigarh facility to add another 7 MT to its installed capacity. The project would be completed in two phases with an estimated cost of Rs 24,000 crore.
In the first phase, the company intends to expand the plant capacity by 4 mtpa with an investment of Rs 15,000 crore. In the second phase, it will add another 3 mtpa with Rs 9,000 crore outlay.
