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| JSW Steel defers production from Vijaynagar plant |
| Press Trust of India / New Delhi Nov 11, 2008, 17:39 IST |
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After increasing the production capacity to 6.8 million tonnes from 3.8 million tonnes at its Vijaynagar plant, JSW Steel has deferred commissioning the extra production lines in view of low demand and correction in the price of steel amid the global economic crisis.
"We are waiting for the market to firm up before commencing production from the Vijaynagar facility after its capacity expansion," JSW Group CFO Seshagiri Rao told PTI.
The company had already announced a cut in production by 20 per cent and reduction in prices by up to Rs 5,500 a tonne to match the fall in consumption and check cheaper imports.
The steel major will take a decision next month as to when should it start production from the unit, he said. The new facility will be ready for production by November 25 and trial runs are successfully on, he added.
Initially, the company had planned to start production from the Karnataka steel unit by October.
Sajjan Jindal-led JSW Steel as expanding its finished steel capacity at Vijaynagar plant in Karnataka to 6.8 million tonnes from its present capacity of 3.8 million tonnes.
It has already commissioned a sinter plant and two blocks of coke oven batteries as part of the company's Rs 5,300 crore expansion project at Vijaynagar.
JSW Steel plans to reach 32 million tonnes of steel capacity by 2020 for which it would invest Rs 85,000 crore.
On commencement of the expansion project in Q3 of the FY08-09, JSW Steel would become country's largest steel player in private sector with a total crude steel production capacity of 7.8 million tonnes (including 1 mtpa at Salem).
At present, SAIL is India's largest steel producer in the public sector with annual production hovering close to 15 million tonnes, while in private sector Tata Steel tops the list with installed production capacity of 6.8 million tonnes.
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