JSL-led SPV to invest Rs. 7.7bn on downstream park
08 October 2018
Jindal Stainless Ltd. (JSL) will pump in Rs. 7.7bn through a special purpose vehicle (SPV), to develop external as well as socio-economic infrastructure on a downstream steel park in Kalinganagar, where it is the anchor investor.
The park is billed to draw investments worth Rs. 7.2bn from 90 downstream units. The number of units will be in addition to the one installed by the anchor investor. The park has got in-principle approval from the Odisha government.
While building trunk infrastructure such as roads will entail Rs 1.7bn in investments, the rest will be devoted to creating social infrastructure, including accommodation for the employees.
The park will be adjacent to our facility, sprawling on about 300 acres of land. We are awaiting the allotment of land by the state authorities.
The park promises creation of direct jobs for 8,000 people. Besides, 10,000 others are projected to be indirect beneficiaries of the employment spin off.
Despite accounting for around 20% of the country’s crude steel output and leading others in stainless steel production, there is scarcely any downstream steel activity in the state. Odisha is home to leading steel makers like Tata Steel, Jindal Steel & Power Ltd, Bhushan Steel and Jindal Stainless, to name a few manufacturers. Downstream steel parks are expected to provide impetus to value addition and boost steel consumption in the state. Although Odisha produces nearly 22 million tonnes of steel each year, hardly 10% is consumed within the state due to lack of demand.