NEW DELHI (Metro Rail & Steel): JSW Steel, under the leadership of industrialist Sajjan Jindal, is set to allocate Rs 12,000 crore as part of its capital expenditure (capex) strategy for the remaining financial year. The company is also actively exploring opportunities to secure iron ore and coking coal mines to bolster its resource base.
In addition to this substantial capex allocation, JSW Steel is gearing up to enhance its production capacity by another 8.5 million metric tons per annum (MTPA) within the current year. This increase in capacity, once commissioned, is expected to generate significant funds in preparation for the planned capacity addition of 50 MTPA by fiscal year 2030, according to a senior official.
JSW Steel’s Joint Managing Director and CEO, Jayant Acharya, stated, “We have spent nearly Rs 8,000 crore of the total Rs 20,000-crore capex earmarked for this fiscal, and the remaining would be utilized for capacity addition of 6.5 million tons per annum. This capacity addition will be undertaken between Bhushan Power & Steel (BPSL) and the Vijayanagar plant in this fiscal.”
The company is on track to add a combined total of 8.5 MTPA this year, which includes 6.5 MTPA at Bhushan Power & Steel and an additional 2 MTPA at the Vijayanagar plant. This substantial boost in capacity will bring the company’s total production capacity to 36.7 MTPA, up from the current 28.2 MTPA.
JSW Steel expects this expanded capacity to generate additional capital for the next phase of expansion, with a target of reaching 50 MTPA through brownfield projects by fiscal year 2030. Regarding JSW Steel’s discussions to acquire a majority stake in Canada’s Teck Resources, the company expressed its commitment to exploring all options to enhance the supply of coking coal. This includes the possibility of forming strategic alliances both internationally and domestically.
The company had initiated discussions with Teck Resources to acquire a significant stake in its steel-making coal business. This move was part of JSW Steel’s efforts to ensure a secure and sustainable supply of raw materials. Additionally, the company expressed interest in selectively bidding for iron ore and coking coal mines, including iron ore mines and a steel plant owned by ESL Steel, part of the Vedanta Group.
JSW Steel, which currently operates 13 mines, has also secured seven additional iron ore and two coking coal mines through government auctions this year. The company’s focus is on rapidly developing these mines and integrating them into its operations, with the aim of increasing captive iron ore supplies and continuously bidding for new mining opportunities as they arise.
