Jindal Steel and Power (JSPL) is exploring possibility for setting up a steel plant at Patratu in Ramgarh district of Jharkhand. The plant will have a capacity of two to 2.5 million tpa.
The company currently has a wire rod mill of 0.6 million tpa and a bar mill of one million tpa capacity with rebar service centre in Patratu.
The proposed brownfield project is in the active consideration stage and will entail backward integration by setting up a steel making unit. A blast furnace project is in active consideration.
Moreover, basic engineering has already been done and the company is waiting for the right time to take off the project. Once the work commences, it will take two to three years for the plant to become operational.
The company had set a production target of 6.5 million tonne of steel from its India operations, and 1.8 million tonne of steel from its plant in Oman for FY20. The company is hopeful of surpassing and achieving production of over 8.3 million tonne by the end of FY20.
Apart from this, the company’s 1.8 million tpa coal gasification-based direct reduced iron (DRI) plant at Angul district in Odisha resumed operations in January 2020. The plant was not operational for long due to scarcity of coal.
With the DRI plant now operational, the company expects of achieving an additional production run-rate of 1.50 million tonne of steel in FY21.
The company’s plant in Angul, which currently has a capacity of five million tonne, can be scaled up to 20 to 30 million tonne by 2030-35.