JSW Steel to set up new project in West Bengal

Mumbai, May 5 (UNI) JSW Steel Limited plans to set up a new three million tonnes per annum project at West Bengal with a investment of Rs 10,000 crore.

JSW Steel Limited Vice Chairman and MD Sajjan Jindal told mediapersons here today that the first phase of the plant would be completed by mid-2009.

The Company has applied for license for iron ore mining in Karanataka. There are three iron ore mines with capacity of 70-80 metric tonnes each and the Company hopes to start exploration work from mid-2009, Mr Jindal said.

On the coal requirement for steel production, Mr Jindal said 5.5 million tonnes of coal at USD 305 per tonne can be available from China, Brazil, and European centres.

Mr Jindal said the fiscal measures announced by the Union Government relating to the steel sector, particularly the one on imposing export duties on steel products, are expected to be temporary to contain inflation.

On steel prices, he said the strong demand for steel products across the world and the surging input costs will push up the international steel prices further.

The key inputs -- iron ore and coal -- have been settled at historically high levels while the prices of coke, scrap and ferro alloys are skyrocketing, Mr Jindal said.

While the international steel prices are rising in sympathy with the increase in the cost of inputs, steel producers in India have refrained from hiking the prices, sharing the Central Government's concern in containing inflation. Some Indian producers have even reduced the prices responding to the government's initiative of removing custom duties on import of certain raw materials, Mr Jindal said.

He, meanwhile, informed that JSW Steel, during the fourth quarter, expanded its steel and blooms capacity and rolled products capacity from 0.3 MTPA to 0.45 MTPA at the Salem works.

The Company also commissioned a 30 MW power plant at Salem, he said.

''JSW has the largest galvanizing production capacity in the country and is the largest exporter of galvanized products with presence in over 74 countries across the continents,'' he said.

UNI AR MAZ VKG1900