Jindal Steel and Power Invests $4.4 Billion in 7 Million-Ton Expansion

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--With all the necessary infrastructure in place, Jindal Steel and Power Limited's (JSPL) plans to expand the steel output capacity at its Raigarh plant in Chhattisgarh will prove to be a less expensive investment than the construction of a greenfield project. The expansion will take place in two phases and will increase capacity by 7 million tons annually, with an investment of $4.4 billion.

The existing plant at Raigarh has a current capacity of 3 million tons. In the first phase of the expansion, 4 million tons of capacity will be added with an investment of $2.7 billion, followed by the second phase, which will add 3 million tons of capacity with an investment of $1.7 billion. The first phase is expected to be completed within three years of the start of construction.

JSPL requested that the state government allow the proposed capacity expansion at the existing site of the Raigarh plant, but the state insists that a new plant should be set up at a separate location, citing the need for development in other parts of the state.

JSPL has an annual turnover of $3.5 billion and is part of the $18 billion diversified O.P. Jindal Group. The company has investments exceeding $30 billion committed for the future and has several business initiatives currently in progress worldwide.

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