JSW Steel’s Vijayanagar plant, it seems, may not be able to achieve its per day production and despatches targets at present due to the COVID-19 impact. According to information available, the plant is likely to fall short of its more than 9 lakh tonnes of total sales/despatch targeted for June, 2020.
However, it is likely that the plant may end up exporting close to 4 lakh tonnes in June, 2020 to boost its exports share in the same month.
Production hit
The sprawling Vijayanagar plant of JSW Steel has a hot metal production capacity of 33,000-34,000 tonnes per day (tpd). But, since 450-odd workers were found to be COVID-19 positive, the development has taken a toll in terms of labour shortage which is presently impacting the plant’s hot metal output per day. “Since the COVID-19 cases were detected at the plant, the per day production has been reduced by 75-80% to 25,000-30,000 tonnes mainly on account of labour shortage,” inform sources.
While officially there were 450 cases detected at the plant, the buzz is that the figure could be higher. The local government in Bellary, it seems, initially had thought of shutting down the plant to tide over the crisis but it, along with JSW Steel, managed to control the spread of the virus efficiently. Total infected cases in Bellary district amounted to 800-900, as per sources, out of which a substantial number was detected at the Vijayanagar plant alone.
The Vijayanagar plant and township are located in a single sprawling complex but since the COVID-19 cases came to light, the township has been totally sealed off, it has been heard.
“There are no issues with demand after the easing of the lockdown. However, production per day is being impacted because of labour issues at the plant at present and which is hampering packaging and despatches,” a source informed.
There have been no COVID-19 cases at JSW Steel’s other plants located at Salem, Dolvi and JSW Energy’s Barmer (Rajasthan) plant.
Located at Toranagallu village in the Bellary-Hospet iron ore belt, JSW Steel’s fully integrated Vijayanagar plant is the sixth largest in the world, spread over 10,000-acres, and is well-connected to both Goa and Chennai ports.
~ By Madhumita Mookerji
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