JSW Steel to invest Rs 20k cr in capex this FY
Steel

JSW Steel to invest Rs 20k cr in capex this FY

JSW Steel has planned to invest Rs 20,000 crore in capital expenditure (capex) this financial year (FY) and does not expect the new export duty to impact its sales and output or reduce capacity utilisation.

The fresh capex consists of Rs 18,000 crore investment in JSW Steel and Rs 2,000 crore in Bhushan Power and Steel. The company plans to spend Rs 18,000 crore to increase capacity to 36 million tonnes (mt), from 26 mt, despite moderation in demand due to a hike in interest rate. The 10 mt capacity will be added by March 2024.

Joint Managing Director of JSW Steel, Seshagiri Rao, told the media that the company would not reduce capex spending despite moderation in demand or a fall in prices due to the export levy.

Rao said that the company had cut its planned capex of Rs 18,240 crore to Rs 14,198 crore last FY due to the second wave of the Covid-19 pandemic.

The company suggests producing 25 mt of steel and selling 24 mt this FY. Despite export duty, Rao expects shipments to be at 4.5 mt. The government had imposed an export duty of 15% on steel products to bring down increasing domestic prices.

In a bid to lower production costs, the government waived off customs duty on the import of some raw materials, including coking coal and ferronickel.

Rao said that steel prices have dropped by 10% in the last few days due to the trend in the international market on the back of a drop in raw material prices.

He said that markets had given too much weightage to the export duty, negatively impacting the steel sector. The government has also increased the export duty on iron ore from 30% to 50%, which will reduce costs substantially.

He added that steel demand in the March quarter might have fallen compared to the same period last year, but sequentially it is up 7%, indicating robust demand with government spending.

Image Source

Also read: JSW Steel's planned growth is equal to capacities in last 20 years

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

JSW Steel has planned to invest Rs 20,000 crore in capital expenditure (capex) this financial year (FY) and does not expect the new export duty to impact its sales and output or reduce capacity utilisation. The fresh capex consists of Rs 18,000 crore investment in JSW Steel and Rs 2,000 crore in Bhushan Power and Steel. The company plans to spend Rs 18,000 crore to increase capacity to 36 million tonnes (mt), from 26 mt, despite moderation in demand due to a hike in interest rate. The 10 mt capacity will be added by March 2024. Joint Managing Director of JSW Steel, Seshagiri Rao, told the media that the company would not reduce capex spending despite moderation in demand or a fall in prices due to the export levy. Rao said that the company had cut its planned capex of Rs 18,240 crore to Rs 14,198 crore last FY due to the second wave of the Covid-19 pandemic. The company suggests producing 25 mt of steel and selling 24 mt this FY. Despite export duty, Rao expects shipments to be at 4.5 mt. The government had imposed an export duty of 15% on steel products to bring down increasing domestic prices. In a bid to lower production costs, the government waived off customs duty on the import of some raw materials, including coking coal and ferronickel. Rao said that steel prices have dropped by 10% in the last few days due to the trend in the international market on the back of a drop in raw material prices. He said that markets had given too much weightage to the export duty, negatively impacting the steel sector. The government has also increased the export duty on iron ore from 30% to 50%, which will reduce costs substantially. He added that steel demand in the March quarter might have fallen compared to the same period last year, but sequentially it is up 7%, indicating robust demand with government spending. Image Source Also read: JSW Steel's planned growth is equal to capacities in last 20 years

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?