JSPL looks to set up 2-2.5 mtpa steel plant at Patratu
24 March 2020
Jindal Steel and Power Ltd (JSPL) is exploring the possibility of setting up a steel plant with a capacity of 2-2.5 million tonnes (mt) per annum at Patratu in Ramgarh district of Jharkhand. At Patratu, the company currently has a wire rod mill of 0.6 mtpa and a bar mill of 1 mtpa capacity with a rebar service centre.
According to Hervinder Singh, President - Mining and International Projects, JSPL, the proposed brownfield project is in the “active consideration” stage and will entail backward integration by setting up a steel making unit.
“A blast furnace project in Patratu is in active consideration. The raw material is available and we want to produce steel and feed to the mills there. So, a 2-mt plant at Patratu is in a strong conceiving stage. The basic engineering has already been done and we are just waiting for the right time to take off,” Singh told on the sidelines of a seminar on infrastructure and housing organised by the Calcutta Chamber of Commerce here recently.
The project, if undertaken, will require an investment of “a few thousand crores”, he said. Once plans are firmed up and work begins, it will take between two and three years for the plant to become operational.
For the financial year 2019-20, JSPL had set a production target of 6.5 mt of steel from its India operations, and 1.8 mt of steel from its plant in Oman. According to information available on the investor con-call, JSPL is hopeful of surpassing this and achieving production of more than 8.3 mt by the end of this fiscal.