BS reported that Jindal Stainless Limited is planning to spend INR 6,000 crore over the next 2 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 at Jajpur in Orissa.

Mr Ratan Jindal vice CMD of Jindal Stainless said that "We would spend about INR 5,600 crore in the setting up of second phase of 0.8 million tonnes per annum of steel in Jajpur in Orissa. The plant would be commissioned by 2012." He added that it has already invested INR 2,250 crore in setting up of phase I of 0.8 million tonnes capacity in Jajpur.

Mr Jindal said that it would borrow INR 3,200 crore from Indian and foreign banks for this project, while INR 1,000 crore would be accumulated through external commercial borrowing. Another INR 1,200 crore would be invested through internal accruals and promoters would infuse equity of the balance amount of INR 200 crore.

He said that expansion plant at Hissar in Haryana would require INR 400 crore. He added that "We would take our current cold rolling capacity of 0.275 million tonnes at Hissar to about 0.4 million tonnes by the end of 2009. The investment in Hissar plant would be done mainly through internal accruals."

With new capacities being planned in two phases of 0.8 million tonnes each in Orissa, the total capacity of Jindal Stainless would be 2.5 million tonnes by 2012, making it one of the largest integrated stainless steel manufacturers in the world. It also plans to expand its ferrochrome unit in Vietnam from the existing 60,000 ton to 200,000 tonne.