Earlier, the CapEx plan of JSW Steel was INR 20k crore, which has now been modified to INR 15k crore.
December 1, 2022
JSW Steel Ltd., an Indian steel manufacturer and a flagship company of the JSW Group, has modified its CapEx plans for the current fiscal to INR 15,000 crore. Earlier, the initially planned investment was to the tune of INR 20,000 crore – as per a news report. The modified plan ensued as a result of the weakening global commodity cycle, the impact on cash flows because of steep correction in steel prices at the international level and fears of a global economic slowdown.
According to Mr. Seshagiri Rao, Joint MD, and Group CFO, JSW Steel, the planned CapEx for FY23 was INR 20,000 crore. Of the earmarked INR 15,000 crore of investment, about INR 7,000 crore has already been spent in the first six months, and the remaining is scheduled for H2 of the fiscal.
In addition, the proposed capacity expansion plan – addition of 10 million tonne per annum (MTPA) over the next three years – at an estimated outlay of INR 48,000 crore is underway. The Mumbai-based manufacturer will undertake and complete the said expansion according to the schedule.
Meanwhile, JSW’s Brownfield investment in a coke oven plant of 1.5 MTPA at the Vijayanagar plant was commissioned in Q2 but the project will be completed by FY24.