JSPL’s Crude Steel Capacity Set to Increase to 9.6 MTPA

Jindal Power and Steel Limited (JSPL) which is a part of O. P. Jindal group has hit the headlines recently for the installation of 3 MnT basic oxygen furnace (BOF) in its Angul plant in Odisha, marking the completion of its 6 MTPA integrated steel Project at Angul.

The company already has an EAF (Electric arc furnace) facility of 3 MnT capacity installed in the same plant. With the completion of new steelmaking capacity, JSPL will utilize the full capacity of its 4 MTPA blast furnace, which is largest in India. The total capex involved in setting up of the 6 MTPA plant is INR 33,000 crores.

As per the company’s top official, after the installation of BOF, JSPL’s Angul plant is capable of manufacturing 20 heats per day means 5,000 tonnes of crude steel daily. It is expected that additional steel volumes of 0.5 MnT in FY18 will come from the added capacity.

The company has one more steel plant in Raigarh, Chhattisgarh with a capacity of 3.6 MTPA and the total steel manufacturing capacity of both Raigarh and Angul plant stands at 9.6 MTPA. For FY19, the company is expecting total steel volume of 7.5 to 8 MnT from both Angul and Raigarh plant.

The company has anticipated that its EBDITA margins will improve by INR 1,500-2,000/MT indicating improved efficiency and cost savings of INR 1,500-2,000 per tonne because of BOF installation. The company’s official has particularly mentioned that the capex at Angul plant has not added to the debt burden of the company.

In its new facility at Angul, JSPL has deployed the innovative dry gas cleaning system, which is superior in terms of environment friendliness as compared to wet gas cleaning plant. This system significantly lowers the energy consumption and parallel generates converter gas that can power other units of steel complex. The company has partnered with SMS group for engineering and supply of BOF equipment.

Along with hot metal production facility, JSPL has a bar mill of 1.4 MTPA and a plate mill plant of 1.5 MTPA capacity in Angul. It is capable of manufacturing widest plates of size 4.9 metres and of thickness ranging from 5-150 mm.

JSPL’s Crude Steel Production

*Data available from Jan to Nov’17
Source: JPC
Quantity: in MnT