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JSW Projects and Capex update

Steel News - Published on Mon, 27 May 2019

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All key projects viz Expansion of crude steel capacity at Dolvi works from 5 MTPA to 10 MTPA, capacity expansion of CRM-1 complex at Vijayanagar works, modernization-cum-capacity enhancement at downstream facilities of JSW Steel Coated Products and strategic cost savings projects are progressing satisfactorily for commissioning as per schedule.

The works pertaining to revamping and capacity up-gradation of BF-3 at Vijayanagar too are progressing satisfactorily. After taking into consideration strong domestic demand conditions, and with a strategic intent of ensuring no volume loss for FY2020, the Company has decided to defer the shutdown of BF-3 at Vijayanagar for upgradation (as part of Vijayanagar 12 MTPA to 13 MTPA expansion) to a later period after the new BF at Dolvi gets commissioned by March 2020 and starts ramping up. All other projects at Vijayanagar like SMS, Caster and Wire Rod Mill will continue to be completed as per original schedule of March 2020.

In addition, the Board has approved certain new capex proposals entailing a spend of INR 5,700 crores, key among which are :
- Downstream investment for about INR 1,000 crores
- Cost saving projects of about IR 2,200 crores
- Mining and Sustainance capex of about INR 2,000 crores

With this, the Company is now implementing a cumulative capex spend of INR 48,715 Crores (net of capex projects put on hold during the year) over FV2018 - FY2021. With a cumulative rash outflow of INR 14, 371 crores in last two years, the Company plans to spend about INR 34,300Crores over next 2 years, with some spillover to FY2022. These projects are planned to be funded by a mix of debt and internal accruals.

Source :

Posted By : Ratan Singh on Mon, 27 May 2019
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