JSPL to invest Rs 1 lakh cr by 2020 to raise capacity
New Delhi: Jindal Steel and Power (JSPL) plans to invest Rs 1 lakh crore to expand its capacity multi-fold to 20 million tonnes per annum in the next eight years, company chairman Naveen Jindal has said.
"We are in the process of expanding the capacity of Raigarh plant to 7 million tonnes per year (MTPA). Then new capacities at Angul in Odisha and Jharkhand will also come up. Overall, we will have 20 MTPA production capacity by 2020," he told PTI.
JSPL has a 3 MTPA capacity at Raigarh in Chhattisgarh and is planning to commission the first phase of its 6 MTPA plant at Angul in Odisha by 2013-14. Besides, the company is also constructing a greenfield plant of similar capacity in Jharkhand.
Stating that the company does not have any problem in financing its projects, Jindal said, "Expansions and construction on some of them (new capacities) are already on and investments are being made. For 20 MTPA, it will be Rs one lakh crore investment."
Earlier, the company had announced to invest Rs 45,000 crore in its expansion by 2015-16, through a mix of debt and internal resources. As on March, 2012, the company had a net debt of about Rs 17,000 crore and debt-equity ratio of 0.61.
Besides, it also had a cash profit of Rs 5,578 crore at the end of the last fiscal.
Explaining about the expansion plan of one of the company's plant, JSPL's Executive Director (Projects) at Raigarh unit, Atul Misra said the firm has already initiated the process to acquire land and other regulatory clearances to expand the Chhattisgarh plant to 7 MTPA capacity.
"We will go in steps... Expanding the capacity by 4 MTPA will take four and half years and it will come in the adjoining areas. We are envisaging Rs 17,000-18,000 crore investment for expansion of Raigarh plant alone," he said.