JSW Steel is planning to increase the production capacity of its Vijayanagar plant in Karnataka to 18 million tonnes per annum from the current 12 mtpa. This will be done with an investment of about Rs 18,000 crore.
Currently, a project is going on to up production at the plant from 12 mtpa to 13 mtpa, and it will be completed by March 2020.
According to Seshagiri Rao, Joint Managing Director, JSW Steel, the company already has the requisite permission to enhance output at Vijayanagar up to 16 mtpa. Depending on iron ore availability, production will be raised to 18 mtpa.
A report in The Hindu quoted him as saying that steel companies typically spend Rs 5,000 crore-Rs 6,000 crore for setting up 1 mtpa of steel production capacity, but JSW Steel has managed it at Rs 3,500 crore.
The cost of brownfield expansion at Vijayanagar will be much lower, at about Rs 3,000 crore, he said. Talking about the availability of iron ore in Karnataka, he said the company has won six iron ore mines and started production at three mines while efforts are on to operationalise the remaining ones.
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