Hissar (Haryana): Steelmaker Jindal Stainless Ltd plans to spend Rs6,000 crore over the next two years for expansion of its manufacturing capacity.
The bulk of the investment would go into the construction of phase-II of its stainless steel plant in Jajpur, Orissa.
“We would spend about Rs5,600 crore in the setting-up of second phase of 0.8 MT per annum of steel in Jajpur in Orissa. The plant would be commissioned by 2012,” Jindal Stainless vice-chairman and managing director Ratan Jindal told reporters here.
The company would borrow Rs3,200 crore from Indian and foreign banks for this project, while Rs1,000 crore would be accumulated through external commercial borrowing. Another Rs1,200 crore would be invested through internal accruals. “Promoters would infuse equity of the balance amount of Rs 200 crore,” Jindal said.
The company has already invested Rs 2,250 crore in setting up of phase-I of 0.8 MT capacity in Jajpur.
Expansion of the company’s plant at Hissar in Haryana would require Rs 400 crore. “We would take our current cold rolling capacity of 0.275 MT at Hissar to about 0.4 MT by the end of next year,” Jindal said. The investment in Hissar plant would be done mainly through internal accruals, he added.
With new capacities being planned in two phases of 0.8 MT each in Orissa, the total capacity of the company would be 2.5 MT by 2012, making it one of the largest integrated stainless steel manufacturers in the world.
The company also plans to expand its ferro-chrome unit in Vietnam from the existing 60,000 tonnes to 2,00,000 tonnes.
Started in 1970, Jindal Stainless is part of the $6 billion Jindal Group.