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Production Capacity Of JSW Steel To Increase To 37 MTPA by FY25

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Production Capacity Of JSW Steel To Increase To 37 MTPA by FY25
22 Jul 2022
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News Synopsis


By the financial year 2025, JSW Steel, the flagship firm of the diverse JSW Group, plans to increase its production capacity in India to 37 million tonnes per annum (MTPA). Additionally, the business has allocated Rs 10,000 crore to boosting the usage of renewable energy.

We anticipate that by FY25, our combined India steel producing capacity will increase from 27 MTPA to 37 MTPA. The expansion of our downstream capacities, which have grown dramatically over the past two to three years and are producing considerable value for JSW Steel, complements these developments, according to chairman Sajjan Jindal, while speaking at the company's Annual General Meeting (AGM).

Despite the current macroeconomic issues, the Indian steel sector has a bright future because the demand is anticipated to increase steadily over the next ten years. According to him, India's steel consumption increased from 100 MTPA before the pandemic to 106 MTPA in FY22.

The current macro challenges notwithstanding, the future of the Indian steel industry is healthy, with demand expected to grow at a steady rate through the decade. In FY22, India’s steel consumption grew to 106 MTPA, from the pre-pandemic level of 100 MTPA, he said.

He described the export taxes levied on steel in May 2022 as a "major, but temporary headwind." The duties, he said, "were only imposed to rein down inflation and would be repealed once inflation moderates. We continue to work with the administration on this topic."

He added that the corporation has already set aside Rs 10,000 crore to expand the use of renewable energy and that it is also doing several steps to minimise carbon footprint in accordance with India's net zero aspirations. This also applies to how we run our business, he continued.

As a cost-competitive exporter of steel, India has an opportunity to take on a larger role in the global steel trade, aided by the government’s continued thrust on manufacturing-led growth and merchandise exports. At JSW Steel, we are also expanding our India capacity in a phased manner to tap into these opportunities,” Jindal added.

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