Steel minister inaugurates JSPL’s 1.4 mtpa TMT rebar mill in Odisha

Steel minister Ram Chandra Prasad Singh has inaugurated Jindal Steel and Power Ltd (JSPL) 1.4 million tonnes per annum (mtpa) TMT rebar mill at its integrated complex in Angul district of Odisha.

According to JSPL, the capacity is capable of making India’s only 50 mm TMT rebars, used in construction and infrastructure projects.

The minister also inspected the functioning of India's first and only coal gasification-based 2 mtpa direct reduced iron plant the firm. The coal gasification plant captures around 2,000 tonnes of carbon dioxide per day and remains crucial in decreasing the carbon footprint of JSPL.

Jindal Steel is growing its Angul plant capacity from 6 mtpa to 12 mtpa and plans to reach an overall 15 mtpa steelmaking capacity by 2025. The commissioning of the new capacities is likely to start over a year.

With the capacity growth, the raw material requirements of the firm also require to be met. The firm had won four thermal coal blocks in recent auctions. The combined mining capacity of the mines is 15 mtpa which will make JSPL 100% self-sufficient in thermal coal and is back to the pre-FY14 period.

Various approvals before the commencement of mining, however, may take some time. However, the ramp-up in supplies from these coal blocks is likely to be in line with expansion plans.

Analysts at Centrum Stock Broking said that with the majority of the approvals in place, the firm anticipates the Utkal B1 mine to be functional by FY23-end and others in FY24.

As per analysts’ data, the Odisha group of mines is located about 5-15 kms from the Angul plant, while Gare Palma IV/6 is also just 45 kms from Raigarh.

The firm is also handling its iron-ore supplies. The captive Tensa iron ore mines cater to 25% of JSPL’s iron ore needs currently, said analysts at Motilal Oswal Financial Services.

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Also read: JSPL to set up second coal gasification plant at Raigarh plant