India’s leading steel maker JSW Steel in an Investor Call has reiterated commitment to CAPEX spending. JSW Steel Deputy MD Mr Jayant Acharya told analysts “You have to look at little middle term when we are committing capital expenditure as per our strategic plan. We are very optimistic with regard to the overall building infrastructure in India and also other sectors of the economy either you take auto, or you take packaging industry, the renewable industry, appliances. They all have lot of big potential, whereas there are a very few players in India, who are capable of creating new capacity. That is why we are not changing our plans on the CAPEX for expanding our capacity by 7.5 million tonnes at Vijayanagar, nor expanding capacity at Bhushan Power & Steel to 5 million tonnes. They are on track. They already placed orders. Project work is in full swing at the site. Only what we have reduced the capital expenditure is relating to special projects and other discretionary projects. Our view on the outlook or growth in steel demand in India, it remains intact.”Mr Acharya added “We have put only INR 5,000 crores on hold and INR 48,000 crores remain for the next 3 years. As and when situation improves, we will take a call on this INR 5,000 crores.”While answering to a query on decarbonization CAPEX, Mr Acharya said “We already have 2 plants using the coke oven gas and the other heat at Dolvi. That is 175 MW units, just commissioned a few days back. There is another 60 MW & there is one more plant, which will get commissioned by September. 170 MW plus 60 MW is 230 MW at Dolvi is majorly to use the heat and the gas that would come in the process. The way we are working as a part of decarbonization is by reducing carbon emission to replace our entire coal-based power plants with renewables. In the direction, we have signed with JSW energy for this 958 MW. 225 MW has already started and balance will start in this financial year. Over and above that, we are also looking at seriously to commit for more renew able power in future and replace the existing fossil fuel-based power in addition to catching the heat and the gases that are there in the process to generate power.”
India’s leading steel maker JSW Steel in an Investor Call has reiterated commitment to CAPEX spending. JSW Steel Deputy MD Mr Jayant Acharya told analysts “You have to look at little middle term when we are committing capital expenditure as per our strategic plan. We are very optimistic with regard to the overall building infrastructure in India and also other sectors of the economy either you take auto, or you take packaging industry, the renewable industry, appliances. They all have lot of big potential, whereas there are a very few players in India, who are capable of creating new capacity. That is why we are not changing our plans on the CAPEX for expanding our capacity by 7.5 million tonnes at Vijayanagar, nor expanding capacity at Bhushan Power & Steel to 5 million tonnes. They are on track. They already placed orders. Project work is in full swing at the site. Only what we have reduced the capital expenditure is relating to special projects and other discretionary projects. Our view on the outlook or growth in steel demand in India, it remains intact.”Mr Acharya added “We have put only INR 5,000 crores on hold and INR 48,000 crores remain for the next 3 years. As and when situation improves, we will take a call on this INR 5,000 crores.”While answering to a query on decarbonization CAPEX, Mr Acharya said “We already have 2 plants using the coke oven gas and the other heat at Dolvi. That is 175 MW units, just commissioned a few days back. There is another 60 MW & there is one more plant, which will get commissioned by September. 170 MW plus 60 MW is 230 MW at Dolvi is majorly to use the heat and the gas that would come in the process. The way we are working as a part of decarbonization is by reducing carbon emission to replace our entire coal-based power plants with renewables. In the direction, we have signed with JSW energy for this 958 MW. 225 MW has already started and balance will start in this financial year. Over and above that, we are also looking at seriously to commit for more renew able power in future and replace the existing fossil fuel-based power in addition to catching the heat and the gases that are there in the process to generate power.”
