JSPL to invest close to Rs 2,000 crore for steel projects at Angul

ANGUL: Jindal Steel and Power Limited (JSPL) has lined up an investment of close to Rs 2,000 crore to set up an additional 11 million tonne capacity to manufacture iron ore pellets at Barbil and Angul by 2016. The new pellet making units will take its capacity to 15 million tonne and will serve as an alternative source of raw material to the Navin Jindal company and also guard against any delay in getting captive iron ore mines for its upcoming six million tonne steel project at Angul in Odisha.

In step, JSPL is putting up a 4 million tonne pellet unit at Barbil at an investment of Rs 750 crore. The new facility will come up adjacent to its existing 4.5 mt pelletisation unit at the site.The new facility will be commissioned in September 2013.

Another Rs 1200 crore will be spent on setting up a seven million tone pellet plant at Angul which is slated to be commissioned by 2016. JSPL’s existing pellet unit at Barbil is used to supply pellets to its Raigarh unit while the rest is sold off in the market.

“We are hedging our bets so far as raw material security is concerned. We have full back up option. We are adding some 11 million tone of pellet-making capacity. By utilizing low grade iron ore fines and converting them into pellets we will have the option to use it as a raw material for our steel making operation,” Ravi Uppal, managing director, JSPL said on the sidelines of a press meet at the plant.

JSPL which is spending Rs 30,000 crore in a 6 mt steel and 800 MW power project, is due to commission its steel melting shop within the next two months. The group is also slated to commission the first-ever coal gasification unit in the country to power its steel making operations.