Steel companies are looking to restart expansion projects on the back of surging steel prices. In the next five years, about 29 million tonne capacity is likely to be added, with most of it expected by FY24.

JSW Steel is looking to add 14.8 million tonne across Dolvi (Maharashtra), Vijaynagar (Karnataka) and at Bhushan Power & Steel facility in Jharsuguda (Odisha). Tata Steel has restarted its five million tonne expansion project at Kalinganagar (Odisha). Jindal Steel & Power (JSPL) is looking to add six million tonne at Angul (Odisha).

Additionally, NMDC's Nagarnar Steel Plant is expected to commission its three million tonne greenfield steel plant. All put, the expansion projects add up to about 29 million tonne.

JSW Steel’s Vijaynagar plant is at 12 million tonne. The hot metal capacity at four units at Vijaynagar was being expanded, which will give one million tonne of extra capacity which will happen in 2021.

A five million tonne expansion at Vijaynagar, approved by the board, will be commissioned in March 2024, at a capex cost of Rs 15,000 crore.

The revamp of a blast furnace at the location will add another 1.5 million tonne. The project was put on hold because the company wanted to take a shutdown after Dolvi expansion. Once Dolvi happens, it can come in.

The expansion at Vijayanagar will take the capacity at the location to 19.5 million tonne by 2024.

The commissioning of Dolvi expansion by five million tonne – which got delayed due to the second wave of COVID-19 -- is expected to happen by the end of September 2021. Also, there are plans to increase Bhushan Power & Steel’s capacity to five million tonne from 2.7 million in three years.

The country’s other private sector steel major, Tata Steel, recently restarted its five million tonne expansion project at Kaliganagar (Odisha), expected to be completed in FY24.

Jindal Steel & Power will expand capacity from six million tonne to 12 million tonne at Angul (Odisha), which will take its overall steel capacity to 16 million tonne in India. The capex is pegged at Rs 18,000 crore.

JSPL’s three million tonne expansion will be commissioned by end-2023 or 2024 and the balance three million tonne by end-2025 or 2026. The steel capacity will have to be augmented for India to achieve 300 million tonne capacity.