[Ferro-Alloys.com] Press Trust of India reported that concerned over uncertain market conditions, JSW Steel has decided to reduce its capex target for 2020-21 by about 45 per cent to INR 9,000 crore against its earlier plan of spending INR 16,340 crore, about 12 per cent lower compared to the company's INR 10,200-crore spend during 2019-20. In the company's annual report, JSW Steel CMD Mr Sajjan Jindal said the company has undertaken a detailed exercise to prioritise all planned and discretionary spends with the objective to conserve liquidity, ensure that strategic projects which are in advanced stages of completion are commissioned on priority basis

 

The annual report for 2019-20 said "JSW Steel is cognisant of the risks that may impact its capital expenditure plans and has decided to recalibrate its capex plan for FY21. It now plans to spend INR 8,200 crore on project capex and another INR 800 crore to operationalise seven mines acquired through auctions in Karnataka and Odisha, versus the earlier capex guidance of INR 16,340 crore. . The investment will be made to develop infrastructure facilities and optimise logistics cost of transporting iron ore from mines to steel manufacturing units. This will significantly strengthen the company's ability to preserve margins.”

 

The report added “The economic impact caused by pandemic has not only affected the new fiscal year's production target of the company but has also led to uncertainty in terms of availability of manpower, expertise to continue capacity expansion projects.”

 

JSW Steel said Dolvi Works is expanding the capacity by 5 million tonnes to 10 million tonnes along with a captive power plant and coke oven plant. The company is also expecting to commission an 8 million tonnes pellet plant and wire rod mill at its Vijaynagar facility by mid of the current fiscal. The downstream modernisation and capacity enhancement projects in Vasind and Tarapur and colour coating plant at Kalmeshwar are expected to be commissioned in the second half of FY 2020-21.

 

Source: Steel guru