JSW Steel Ltd, the flagship company of the JSW Group that operates a 6.8 million tonne per annum (mtpa) steel plant at Toranagallu in Bellary district of Karnataka, has sought 1,100 acres of land more from the Karnataka government to expand its steel mill capacity.
The company is currently in the process of completing its ongoing capacity-expansion programme to reach 10 mtpa by March 2011. This would see an investment of Rs 10,000 crore. Starting from the next financial year, Jindal Steel plans to further expand the capacity to 16 mtpa and set up a 600 Mw captive power plant at an investment of Rs 15,137 crore. The high-level clearance committee of the state government has already approved this proposal, a top official in the state government said.
The company has signed a memorandum of understanding with the state government during the global investors’ meet held on June 3 this year to expand its capacity. They have also sought captive iron ore mines and the state government would be making a recommendation to the Centre in due course of time for prior approval to allot them captive mines, V P Baligar, principal secretary, department of commerce and industries, told Business Standard.
He said the land audit committee has been asked to evaluate the company’s request for additional land. Jindal has sought 900 acres adjacent to its existing steel plant in Toranagallu to store water for its steel plant. It has also sought another 150-200 acres for the purpose of laying a railway line from the mine head to its steel plant. JSW Infrastructure Ltd, a JSW Group company has already signed a MoU with the Karnataka government for laying the railway siding and railway line in Bellary district.
Despite repeated calls, company officials in Toranagallu were unavailable for comments.
At present, JSW Steel owns 3,700 acres in Toranagallu, where it runs its steel plant. The capacity of the plant will reach 10 million tonnes by March 2011. The company buys iron ore from private mine owners near its plant and the new railway line will be used to transport ore to its steel plant.
The government is ready to give them additional land, but subject to scrutiny by the land audit committee, Baligar said.
Recently, the state government has completed the hearing of 1,200 applications for allotment of iron ore mines including an application from Jindal. However, the government was yet to make a recommendation to the Centre for prior approval to allot mines, he said.
JSW Steel manufactures flat and long products such as HR coils, CR coils, galvanised products, auto grade/white goods grade CRCA steel, bars and rods.
