Indian steel giant, JSW Steel has recently announced its intentions to set up a new steel plant of 10 MnT per annum capacity in Odisha.
This news comes as a surprise to the industry participants when currently India’s domestic steel industry is facing slump in demand and prices are extremely under pressure. However, it is also an indication that long-term demand for steel in the country is likely to be quite good.
As reported, the company’s plan involves setting up of slurry pipeline worth INR 1,500-2,000/MT, coal processing facility, a 500 MW solar plant and a thermal power plant.
The quarterly performance of JSW Steel has improved by quite a good numbers in Q1 FY17 after the Indian government announced MIP in the month of Feb’16. Also with the imposition of anti-dumping duty on flat products and continuation of MIP on other steel products in Aug’16, steel manufacturers in India are likely to get good protection against cheap imports.
Last year, when after a decade long fight over environmental clearance and land acquisition, South Korean steel giant, POSCO cancelled out its plan to set-up 12 MnTPA in Odisha, the state earned a bad name in the industry in terms of non-friendly province for industrial set-up.
However, with the commencement of Tata Steel’s 3 MnTPA capacity greenfield project in Kalinanagar, Odisha and now JSW Steel’s announcement to set up a 10 MnTPA capacity steel plant, it is quite likely that the image of the state will improve as a viable place for industrial investments.
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