JSW Steel has cut its Capital Expenditure (capex) by 45pc to Rs90bn ($1.19bn) from Rs163bn. The revised capex is 12pc lower than the prior year’s Rs 102bn.
In the wake of market uncertainty along with labour and material constraints, company decided to revise planned capex on all projects.
This is to prioritise funds and ensure smooth commissioning of strategic projects which are in advanced stages of completion, said Sajjan Jindal, Chief Managing Director, JSW Steel.
Of the Rs90bn, around Rs82bn will be utilised in ongoing projects and rest put into functioning of seven mines acquired through auctions in Karnataka and Odisha by optimising logistic cost of transporting iron ore from mines to steel units.
Expansion of crude steel’s annual capacity at Dolvi Works from 5 to 10 mn mt, and commissioning of pellet plant and wire rod mill of annual capacity 8mn mt at its Vijaynagar facility is likely by the end Q2. The modernisation and capacity building projects in Vasind and Tarapur are also likely to be operational in the second half of FY21.