OPEN APP
Home / Companies / News /  Steel minister inaugurates Jindal Steel’s TMT rebar mill in Angul, Odisha
Listen to this article

Union steel minister Ram Chandra Prasad Singh has inaugurated Jindal Steel and Power Ltd's 1.4 million tonne per annum (mtpa) TMT rebar mill at its integrated complex in Odisha's Angul district.

According to JSPL, the capacity is capable of producing India’s only 50 mm TMT rebars, used in construction and infrastructure projects.

The minister, who inaugurated the mill on Thursday, also inspected the functioning of India's first and only coal gasification-based 2 mtpa direct reduced iron plant of the company. The coal gasification plant captures approximately 2,000 tonnes of carbon dioxide per day and remains critical in reducing JSPL’s carbon footprint.

Jindal Steel is expanding its Angul plant capacity from 6 mtpa to 12 mtpa and plans to achieve an overall 15 mtpa steelmaking capacity by 2025. The commissioning of the new capacities is expected to start over a year’s time.

With the capacity expansion, the raw material requirements of the company also need to be met. On the positive side, the company had won four thermal coal blocks in recent auctions. The combined mining capacity of the mines is 15mtpa (which can be expanded to 17mtpa) which will make JSPL 100% self-sufficient in thermal coal and is back to the pre-FY14 era.

Various approvals before the start of mining, however, may take some time. Nevertheless, the ramp-up in supplies from these coal blocks is expected to be in line with expansion plans. Analysts at Centrum Stock Broking said that “With the majority of the approvals in place, we expect Utkal B1 mine to be operational by FY23-end and others in FY24." The Odisha group of mines are located about 5-15kms from Angul plant while Gare Palma IV/6 is also just 45kms from Raigarh, as per analysts’ data.

The company is also managing its iron-ore supplies. The captive Tensa iron ore mines cater to 25% of JSPL’s iron ore requirements currently, said analysts at Motilal Oswal Financial Services. JSPL had won the bid for Kasia mines at a premium of 118% to the IBM price for further securing its iron ore supplies. The expected iron ore content at Kasia mines remains at 62.5% with reserves of 278mt, as per analysts

Overall, while the company has been growing well and is expected to sustain momentum, the timely execution of projects will hold the key.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout