JSW Steel, the flagship company of the diversified JSW Group, will expand its production capacity in the country by 10 million tonne to 36 million tonne per annum (mtpa), with an estimated investment of Rs 20,000 crore. Further, the firm would also spend another Rs 16,000 crore for capital expenditure next year.
“The capacity expansion would be from 26 mtpa, which would be about 7.5 mtpa at Vijayanagar and 2.5 mtpa at Bhushan Power & Steel (BPSL). These would be met through internal cash flows. The capex for the last fiscal stood at Rs 15,000 crore. Last year, we increased capacity to 23 mtpa from the earlier 18 mtpa, and adding BPSL, our total would be 26 mtpa,” JSW Steel joint managing director and group CFO Seshagiri Rao MVS said.
JSW Steel is planning to expand capacity to 5 mtpa by FY24 from the present 2.7 mtpa, he added. The firm is also expecting the merger of Monnet Ispat & Energy (now JSW Ispat Special Products) to add 1 million tonne to the overall production capacity, taking it to 27 mtpa.