JSW Steel, the JSW Group flagship promoted by Sajjan Jindal, has decided to execute its string of projects in Odisha via a fully owned subsidiary. The steel company has christened it as JSW Utkal Steel Ltd. The company is already incorporated with the Registrar of Companies.
Official sources said, “JSW Steel has sought permissions from the local government in Odisha to facilitate implementation of its projects by its subsidiary. It has submitted the papers and is awaiting a decision from the state government.”
JSW Steel’s board has taken the decision to form the subsidiary company. The objective is to speed up the slew of projects proposed by the company in the state. Investment commitments by the company are for a 12 MTPA crude steel facility, an associated 900 MW CPP, an iron ore pellet unit of 32 MTPA capacity, a captive port to handle its cargo and a slurry pipeline to carry iron ore concentrates from Joda to Paradip, the designated site of the mega steel plant.
The combined outlay for all these projects is INR 55,000 crore. JSW Steel has got the approval for a 10 MnT plant proposed originally. In a revised application, it sought to enhance capacity to 12 MTPA. In parallel, another group firm JSW Infrastructure has secured clearances to install the slurry pipeline. Now, JSW Steel wants all approvals and clearances to be transferred to the subsidiary company.
The steel maker also wishes to put up a captive port to handle its own cargo at Jatadhari river mouth, south of the Paradip major port. Initial estimates have pegged the port capacity at 10 MTPA, later the cargo handling capacity could be expanded to 40 MTPA. It is awaiting the state government nod for this port project which is an integral part of the steel project.
The proposed JSW Steel plant in Odisha envisages producing both flat and long steel products, projecting a better portfolio than the current operational steel plants of Jindal Steel & Power Ltd (JSPL) at Angul and Tata Steel’s greenfield unit at Kalinganagar. Also, the JSW facility is tipped to be the biggest single location steel facility anywhere in the country after it gets on stream.
With the reconfiguration in its proposed project expected to be accompanied by latest technology, JSW Steel is likely to settle for a smaller land parcel measuring 2700 acres. The Odisha government is set to hand over the same land acquired originally for a 12 MTPA steel project proposed by Posco. JSW Steel had sought the same land which the state owned Odisha Industrial Infrastructure Development Corporation (Idco) procured from betel vine growers and other farmers. The steel firm had asked for transfer of all land parcels at the rate of INR 4 lakh per acre.
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