New Delhi: Jindal Steel & Power Limited (JSPL) has reported 20 percent Y-o-Y surge in steel production to 2.01 million tonnes (MT) in the April-June 21 quarter, against 1.67 MT in the corresponding quarter of FY2020-21. This marks a record first quarter production and second highest quarterly production ever.
However, the company has said that its production was impacted slightly due to diversion of medical oxygen to various states.
“Conscious decision by the company to divert oxygen towards saving precious human lives led to production getting impacted slightly. Solid performance in 1QFY22 gives us confidence of achieving FY22 production target of 8.0-8.5 million tones” the company said.
“Despite challenging demand conditions in the domestic market, as a result of a severe than expected second wave of COVID-19, JSPL sales were resilient at 1.61 million tonnes (+3% Y-o-Y). Buoyant export markets continued to provide support with exports accounting for 44% of volumes in the month of June 21 and 34% in 1QFY22. Exports were however impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 1.5 lakh tonnes currently remains stuck at port; which will be shipped as soon as the logistical bottlenecks are removed” it added.
Yesterday Odisha government had cleared the JSPL’s expansion plan for its Angul plant. The company, which had earlier proposed to expand the capacity of its 6 MTPA Angul plant to 18.6 MTPA, has further planned to expand the capacity to 25.2 MTPA at an additional investment of Rs. 24,652 crore. This investment will take JSPL’s total investment to be Rs. 1,00,670 crore, making it the largest single location steel plant capacity in the world.