The Hindu : Business : JSW to invest Rs. 3,000 cr. in aluminium plant in Vizag

Online edition of India's National Newspaper
Tuesday, Jul 12, 2005

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Business

JSW to invest Rs. 3,000 cr. in aluminium plant in Vizag

Special Correspondent

To take up bauxite mining as JV

TORANAGALLU (BELLARY): Jindal South West (JSW) Steel Ltd, a leading integrated steel maker, is hopeful of achieving financial closure for its proposed aluminium plant at Visakhapatnam in three to six months. The company had recently entered into a memorandum of understanding with the State Government for the project with an investment of Rs. 9,500 crore.

JSW is planning to invest Rs. 3,000 crore in the first phase, raising resources from internal accruals and financial institutions and go for a public issue in the second phase. "We are hopeful of completing the second phase of the 1.25 million tonnes project in four years,'' the JSW Executive Director, Vinod Nowal, has said.

Speaking to reporters, who visited the JSW plant here on Sunday along with another Executive Director, J. P. N. Lal, Mr. Nowal said the company would take up bauxite mining as a joint venture with the Andhra Pradesh Mineral Development Corporation, the latter being the majority shareholder (51 per cent).

Mr. Lal said the company was eyeing to become the largest single site steel making facility in the country by enhancing its production capacity to 10 million tonnes from about 2.5 million tonnes at present. The company would now invest Rs. 1,500 crores for augmenting the capacity to four million tonnes by the end of the current fiscal. It had invested Rs. 10,000 crores on the Bellary plant so far and would require another Rs. 10,000 crores to achieve the target by 2010. JSW was the first greenfield company in India to have Corex technology as the main stream facility and ranked among top business houses in turnover, size and scale of operations. The JSW also took up some projects for supply of drinking water and improving the conditions in the villages surrounding the plant.

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