DNA reported that the global financial turmoil coupled with slackening demand for steel seems to have forced JSW Steel to put its ambitious 10 million tonne per annum Jharkhand project on the backburner for now.

As per the MoU signed with the Jharkhand government, the construction of the steel plant should have been started by now. For now, the steel major is looking to complete its projects at Vijayanagar, where it is ramping up capacity to 6.8 million tonne per annum from 3.8 million tonne per annum.

Mr Seshagiri Rao director finance of JSW Steel said that the expanded capacity, which was to be commissioned by this month would not be commissioned before January, adding further expansion to the 10 million tonne per annum mark would also be delayed beyond the targeted 2010.

He said that “West Bengal is our next priority and then is Jharkhand, he added that Jharkhand is a long term goal of the company and will be completed by 2020. Currently we are concentrating on other projects.”

Mr Rao said that it is working hard to achieve complete financial closure for the West Bengal project. He said that “We are in talks with the State Bank of India for an INR 40 billion loan and are currently negotiating for lower interest rates.”

He added that “Currently, we are working to bring our iron ore and coal mines allotted to us in Jharkhand to operational levels nothing more. We are working on operationalizing the Rohne coal bock and Ankua iron ore mines allotted to us.”