Jayaswal Neco grp plans to set up 2-MTPA steel plant in Gadchiroli

Nagpur: Three decades after it abandoned the plan due to Maoists' presence in Gadchiroli, Jayaswal Neco Industries Limited (JNIL), one of the oldest steel companies in Nagpur and Central India, has now decided to set up a 2 million tonnes per annum (MTPA) capacity steel plant in the district. The group signed a Memorandum of Understanding (MoU) with the state govt during the World Economic Forum (WEF) meet at Davos last month, proposing an investment of 12,200 crore.
The company was encouraged by the changing scenario in the district, where even bigger players like JSW Group announced plans to set up a Rs1 lakh crore plant, the management said. "We were thinking of starting a steel plant at Gadchiroli during the 1990s, but changed our mind as the district was unsafe due to Maoists' presence at that time," JNIL's managing director Ramesh Jayaswal told TOI, adding, "Instead, the company set up a plant at Raipur in Chhattisgarh." JNIL has one MTPA plant in Raipur.Availability of iron ore is another factor behind the company's decision of having a greenfield project in Gadchiroli. Kolkata-based Super Smelters Limited also signed a MoU with the state govt during the Advantage Vidarbha event held last week for a 10,000 crore plant in the district. Surjagad Ispat inked a pact for an expansion over and above its earlier plans entailing an investment of 20,000 crore.On a number of steel companies planning expansion in the district, Jayaswal said it is expected that the demand for steel would go up in the coming days. The consumption of steel normally grows by 2% over and above the GDP rates. This means there is enough space for the new manufacturers. "The demand for steel is expected to increase due to the fast-pace of development in the country. Even the govt has set a target of steel production to reach 300 million tonnes by 2030," he said.The company, which is already mining iron ore, the raw material most vital for the making of steel, is open for bidding to get new blocks too. "It is necessary to have a steel plant near the source of the iron ore, as every tonne of steel needs 1.6 to 1.7 tonnes of iron ore during it's production," he said.