JSW Steel Trims Fiscal Capex Plan Substantially

SEATTLE (Scrap Monster):  Indian steelmaker JSW Steel Ltd. announced its decision to cut its capex plans for the current fiscal, owing to uncertainties in market conditions due to coronavirus pandemic.

The company announced its decision to reduce its capex target for FY21 by around 45% to INR 9,000 crore. Out of this, INR 8,200 crore will be spent on project capex, whereas the remaining INR 800 crore will be utilized to operationalise seven recently acquired mines- three mines in Karnataka and four in Odisha. The company had earlier planned to spend INR 16,340 crore. The company had spend INR 10,200 crore on capital projects during the prior fiscal. When compared with this, the revised capex target for 2020-’21 is almost 12% lower.

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Sajjan Jindal, CMD, JSW Steel the company has decided to prioritise all planned and discretionary spends, in an attempt to conserve liquidity. The company will focus on commissioning of strategic projects on priority basis. The activities at various project sites were seriously impacted by extended lockdown restrictions, due to material short-supply and non-availability of adequate manpower.

JSW Steel plans to double Dolvi Works capacity. Also, the pellet plant and wire rod mill at Vijaynagar steel facility will be commissioned by mid-FY21.