Domestic steel major Jindal Steel and Power Ltd has said it would invest more than Rs 10,000 crore in the current financial year towards capacity expansion in Odisha, Jharkhand and Chhattisgarh.
The company reported a 16% increase in net profit at Rs 1,161.6 crore for the quarter ended March 31 while turnover grew by 42% to Rs 5,482.3 crore during the quarter. It attributed better sales of steel and pellets and higher power generation during the quarter for the improved financial performance.
“We will be spending more than Rs 10,000 crore in 2012-13 to part-finance the ongoing expansions in our company,” said Sushil Maroo, group financial officer, JSPL.
The company produces around 4.5 million tonnes per annum (mtpa) at its plant in Raigarh, Chhattisgarh, and is now setting up three steel facilities at Angul in Odisha, Patratu in Jharkhand and Raigarh to raise capacity to 18 mtpa. This would entail an overall investment of over Rs 200,000 crore staggered over the next five years.
JSPL is also setting up 4,200-MW captive power plants in Chhattisgarh and Jharkhand, besides a Rs 45,000-crore investment in a coal-to-liquid project in Odisha.