JSW Steel in talks with Orissa for 10 mt plant

The Sajjan Jindal-promoted JSW Steel has initiated talks with the Orissa government for a 10 million tonne plant.

This would be the third greenfield project being planned by JSW. The idea is to have steel making facilities wherever raw material is available.

For instance, in Jharkhand, the company had signed a memorandum of understanding with the government for a 10 million tonne plant on the basis of coal and iron ore availability.

In West Bengal, the company is planning a 10 million tonne plant on the back of coal availability and in Orissa, iron ore.Sajjan Jindal, vice-chairman and managing director, JSW Steel, however, said that it was at the preliminary stage.

Once the JSW steel project materialised, the company would join the list of Rs 108,586 crore mega projects of 36 million capacity that have been announced in the last two years. Of the MoUs signed, Tata Steel's project appears to be the only one taking off, with orders for equipment placed.

Sources said the JSW Steel Orissa project was likely to take off last among the greenfield capacities planned by the company. The company is expected to sign the shareholders' agreement for the West Bengal plant in November, while in Jharkhand it had already identified land for the project.

Jindal said the group wanted to retain its position as the second largest steel producing group in the country, after Steel Authority of India Ltd (SAIL).

He said the plan was to build a capacity of 50 million tonne within the OP Jindal group by 2020.

At the end of 2006-07, the total steel capacity of the group would be around 6.7 million tonne. SAIL would have 13.9 million tonne.

JSW Steel would have a capacity of 3.8 million tonne, Navin Jindal-promoted JSPL would have two million tonne, Ratan Jindal-promoted Jindal Stainless 0.6 million tonne and Siscol, a JSW group company 0.3 million tonne, by the end of the financial year.

Late O P Jindal has four sons, P R Jindal, Sajjan Jindal, Ratan Jindal and Navin Jindal.

By 2019-20, JSW Steel would have 32 million tonne capacity, Siscol two million tonne. JSPL would have 11.8 million tonne and Jindal Stainless 2.32 million tonne.