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JSW Steel Subsidiary Acquires Land for 65,000 Cr. Greenfield Steel Plant

JSW Group logo

JSW Utkal Steel, a wholly-owned subsidiary of JSW Steel, has acquired 2,950.31 acre of land in Rajnagar, Odisha for the development of a greenfield integrated steel plant with an estimated investment of Rs. 65,000 crore.

The company had received Environmental Clearance (EC) for this project in April 2022, which was re-validated in September 2023. This information was conveyed by JSW Steel via a stock filing dated 5th January 2024.

JSW Utkal Acquires 2,700 Acre of Forest Land

JSW Steel clarified in its release that out of the total acquired land, 2,677.80 acre is forest land for which the company has received requisite possession documents on 4th January, 2024. The remaining 272.51 acre of land had already been leased to the company by the Odisha State government partly in August 2022 and partly in November 2023.

New Steel Plant to Augment JSW Steel’s Capacity by 13.2 MMTPA

Steel Plant

JSW Utkal’s plant will add a crude steel capacity of 13.2 Million Metric Tonne Per Annum (MMTPA) to JSW Steel’s consolidated production capacity. Currently, JSW Steel has a manufacturing capacity of 28.5 MMTPA.

Interestingly, once complete, the Rajnagar facility will turn out to be JSW’s largest single location Steel plant in terms of capacity. As per the company’s website, currently JSW Steel’s facility in Vijayanagar, Karnataka is its largest Steel-producing facility with a capacity of 12 MMTPA.

JSW Utkal’s Plant to Manufacture 12.5 MMTPA of Downstream Products

JSW Utkal’s Rajnagar Steel plant will have the ability to roll out 12.5 MMTPA of downstream products. The plant will have a flat products manufacturing capacity of 9.7 MMTPA, and long steel production capacity of 2.8 MMTPA.

Some of the flat steel products which will be produced at this capacity include Hot Rolled and Cold Rolled coils and sheets, electrical steel, tinplate, and steel plates. Out of these, the largest production share will be that of Cold Rolled coils and sheets at 3.88 MMTPA.

In case of long steel products, rebars, wire rods and medium section products will be manufactured at JSW Utkal’s upcoming plant. Rebars will comprise the largest share of long steel products, with the factory churning out 1.2 MMTPA of rebars.

JSW Utkal’s Steel Plant to Come up in a Phased Manner

JSW Utkal’s Steel plant will come up in three phases as stated in the techno-economic feasability report for the project prepared in 2021 by M.N Dastur & Co. Pvt. Ltd., consulting engineers to JSW Steel for this project.

The plant will have three blast furnaces, one of which will be installed in each of the three phases. Further in each phase, captive Coal-based power generation capacity of 300 MW will be developed.

Other than the first blast furnace, in the first phase, the sinter plant will be installed and two pellet plants will be installed. The first Steel Melting Shop (SMS-1) will be set up in phase 1 of the development. Further, one Hot Strip Mill (HSM) will be installed in this phase along with a Cold Rolling complex.

In the second phase, in addition to the second blast furnace, another pellet plant will be installed. More additions will be done to SMS-1 in this phase. The second HSM and Cold Rolling complex will be installed in phase 2.

In the final phase, the last blast furnace will be installed at the plant, along with the fourth pellet plant. Direct Reduction (DR) unit will be installed in this phase. The second Steel Melting Shop (SMS-2) will be set up in phase 3 of development of JSW Utkal’s upcoming steel plant.

About JSW Steel Ltd.: JSW Steel Ltd. is the flagship company of the JSW Group. The company has its manufacturing facilities in India and the US. In FY-23, the company reported a consolidated top line of Rs. 1,65,960 crore.