ALSO READJSW Steel to tweak Odisha project design, scale up capacity to 12 mtpa OMC open to long-term linkage pact with JSW Steel Flat producer JSW Steel to churn higher margins as against state-owned SAIL JSW Steel plans tie-up with OMC for long-term iron ore linkage JSW Steel may source iron ore from merchant miners for Odisha plant
Sajjan Jindal-owned JSW Steel is set to redraw its project design for the mega steel plant proposed near Paradip in Odisha. The company is keen on 12 million tonnes per annum (mtpa) instead of a 10 mtpa mill proposed initially.
“JSW Steel has of late evinced interest to set up a higher capacity steel plant. They have not elaborated on the reasons to go for 12 mtpa project or the technology they are going to introduce,” said a senior government official with knowledge of the matter.
An e-mail sent to JSW Steel went unanswered.
Sources close to the development said JSW Steel has initiated talks with some overseas companies for some technology collaboration for the Odisha project. The top steelmaker is likely to opt for Corex technology for its proposed Odisha steel plant.
The reconfigured project plan with use of upgraded technology means JSW Steel would settle for a smaller patch of land for the mill. Even the Odisha government is not prepared to allot more than 2700 acres — the same patch of land acquired earlier for the now shelved Posco project — to JSW Steel. In its project proposal submitted to the state government, JSW Steel had asked for 4500 acres for the steel project and associated facilities. It sought the same land which the stateowned Odisha Industrial Infrastructure Development Corporation procured from betel vine growers and other farmers. JSW Steel had asked for transfer of all land parcels at the rate of Rs 4 lakh per acre.
“The state government cannot provide more than 2700 acres for the JSW project. We don’t think the land would be insufficient for the company as they would make use of the latest technology,” said the official.
JSW Steel has pledged an investment of Rs 50,000 crore on the steel project and associated facilities. The plant is expected to go on stream in four years from zero date and when operational, it will create jobs for 50,000 people.
To optimise raw material costs, JSW Steel has committed an investment of Rs 3,700 crore on a slurry pipeline for transporting 30 million tonnes of iron ore each year from Joda to Paradip. Both the projects have been approved by the high level clearance authority, the highest body to clear investments.
To secure iron ore supplies for its integrated steel project, the company has pitched for a long-term agreement for 50 years with state-owned Odisha Mining Corporation to supply 30 million tonne per annum of iron ore fines at IBM declared price.