ET reported that hit by the prevailing industrial downturn India's largest stainless steel producer JSL has shelved its USD 1.2 billion joint venture project with Indonesia's PT Antam TBK in the South East Asian country.

Mr Arvind Parakh JSL Director (Strategy & Business Development) told reporters that "The project is no more commercially viable, so we have decided to shelve it.”

Mr Parakh said that "Nickel prices were hovering at USD 20,000 to 22,000 tonnes last year when we entered in to the 55:45 JV with PT Antam, but now the prices have plummeted to USD 10,000 tonnes making the project unviable.”

He added that however the Indian firm would continue to source nickel from the Indonesian company, which is currently scouting for possible buyers of JSL's stake in the joint venture.

Mr Parakh further added that JSL has already spent about USD 4.5 million in the project and hopes to recover it soon.

JSL Ltd had last year entered into a joint venture with the mining firm PT Antam to build a 20,000-tonne ferronickel plant and 0.3 million tonne stainless steel slab unit in Indonesia. However, with prices of nickel, a vital input for producing the alloy, dipping sharply, the Indian firm has decided to drop the project.

(Sourced from ET)