JSPL shares close nearly 2% down after scrapping $10 bn project in Odisha

Mumbai: Shares of Jindal Steel and Power ended the day nearly 2 per cent lower on Tuesday after it scrapped plans to set up a USD 10 billion coal-to-liquid (CTL) project at Angul in Odisha.

After falling 4.49 per cent to Rs 142.35 in intra-day trade on the BSE, shares of JSPL ended 1.58 per cent lower at Rs 146.70.

On the NSE, the company’s scrip settled with a loss of 1.61 per cent at Rs 146.60.

On the volume front, 5.62 lakh shares of the company changed hands on the BSE, while over 51 lakh shares were traded on the NSE during the day.

JSPL had yesterday said it has scrapped plans to set up a USD 10 billion CTL project at Angul in Odisha following the recent cancellation of Ramchandi mine by the Supreme Court.

“The CTL project was linked with the coal block. If the coal block is gone, then the project is gone,” JSPL Chairman Naveen Jindal had told PTI.

JSPL was allotted Ramchandi Promotional Coal Block, with an estimated reserve of 1,500 million tonnes on February 27, 2009 for the project.

The USD 10 billion project was supposed to produce 80,000 barrels per day of crude using German firm Lurgi’s technology.

The project cost was also to include setting up of a 1,350 MW power plant and mine development expenses.