Steel Firms are Expected to Add 29 million tonnes of Capacity in the Next Five Years
Steel producers are looking to relaunch expansion projects in the wake of rising steel prices. About 29 million tonnes of capacity is projected to be added over the following five years, with the majority expected by Forecast Year 2024. JSW Steel plans to increase capacity by 14.8 million tonnes at its plants in Dolvi (Maharashtra), Vijaynagar (Karnataka), and Jharsuguda's Bhushan Power & Steel complex (Odisha). At Kalinganagar, Tata Steel has restarted a five-million-tonne expansion project (Odisha). Jindal Steel & Power (JSPL) plans a six-million-tonne expansion at its Angul plant (Odisha).
In addition, the Nagarnar Steel Factory, owned by NMDC, is planned to start up its three million tonne greenfield steel plant. The expansion projects add up to around 29 million tonnes. The Vijaynagar factory of JSW Steel has a capacity of 12 million tonnes. The hot metal capacity of four units is being extended, resulting in a one million tonne capacity increase in 2021.
The board has authorised a five million tonne expansion at Vijaynagar and would be commissioned in March 2024 at a capital cost of INR 15,000 crores. JSW Group chairman Sajjan Jindal remarked that this addition reaffirmed their commitment to being a key partner in creating a stronger India through sustainable methods.
JSW said it has secured environmental approval for the project and plans to complete one MTPA extension by upgrading the present plant within the next 12 months, bringing the total capacity to 13 MTPA. Jindal stated that they would generate enormous value for all stakeholders while also creating new job opportunities. This facility will become an essential element of their digitally linked smart steel mills network in India as Artificial Intelligence, and other Industry 4.0 initiatives are implemented.
The new brownfield extension will occupy 600 acres. It will comprise the construction of a 4.5 Mtpa blast furnace, two 350-ton steel melt shops, a 5-MTPA hot strip mill, and various associated and ancillary buildings. The renovation of a blast furnace at the site will provide additional 1.5 million tonnes of capacity. The project was postponed because the corporation intended to take time off following the Dolvi expansion, and it will be able to enter once Dolvi has happened.
Vijayanagar's capacity would be increased to 19.5 million tonnes by 2024 because of the expansion. The five-million-tonne Dolvi extension, which was shelved due to the second COVID-19 wave, is projected to be complete by the end of September 2021. In three years, Bhushan Power & Steel's capacity will be increased from 2.7 million to five million tonnes.
The country's other private-sector steelmaker, Tata Steel, resumed its five-million-tonne expansion project at Kaliganagar (Odisha), which is scheduled to be completed in FY24. Jindal Steel & Power will increase capacity at its Angul (Odisha) plant from six million to twelve million tonnes, bringing its total steel capacity to 16 million tonnes in India. The capital expenditure is calculated to be Rs 18,000 crore.
The first three million tonnes of JSPL's expansion will be operational by the end of 2023 or 2024, and the remaining three million tonnes by the end of 2025 or 2026. In order to obtain a 300 million tonne capacity, India's steel capacity will need to be increased.