JSPL to set up pellet plant in Odisha with Rs 1400cr investment
New Delhi: Jindal Steel and Power today said it plans to set up a 7 million tonnes per annum (mtpa) pellet plant at Angul in Odisha with an investment of up to Rs 1,400 crore.
"We are going to set up a pellet plant at Angul. We already have the clearance from the state government to put up the plant," Jindal Steel and Power's (JSPL) Deputy Managing Director and CEO (Steel) V R Sharma told reporters here.
"The investment for a pellet plant of 7 mtpa size varies somewhere between Rs 1,200-1,400 crore," he added.
JSPL has a 4.5 mtpa pellet plant at Barbil in Odisha and and is in the process of doubling the capacity.
The additional 7 mtpa capacity would come as a part of its expansion project at Angul, where the company is expanding its steel-making capacity to 3.5 mtpa from 2.5 mtpa now.
"The pellet plant will come with our second phase of expansion at Angul. We are going to put up blast furnace, another DRI, another coke oven battery at Angul. With that we are going to put up the pellet plant," Sharma said.
The expansion work at Angul would start as soon as JSPL secures the financial closure for which it is in talks with the prospective banks.
Sharma said JSPL was keen on adding value to the iron ore fines by setting up the pellet plant as in the areas closer to Angul plant, there is hardly any pelletisation taking place now.
"Fines are available in plenty there, but people are not converting (fines) to pelletes. So, we will happy to convert them (fines) into pellets," he said.
Sharma said India currently has around 50 mtpa pellet capacity and with the ongoing expansions, it would go up to 70 mtps in the next five years. He also expressed hope that the capacity would go up to 120 mtpa by 2022.