India's Jindal Steel and Power Limited (JSPL) will commence coal production from its 225 million mt coal block reserve in the eastern Indian province of Orissa in August this year, along with commissioning of a 2 million mt per year direct reduced iron (DRI) plant also located in the same region, company officials said on Wednesday, June 27.
In the first phase, the coal block known as Utkal B-1 allotted to the company will produce 2.5 million mt per year of thermal coal and production will be ramped up subsequently, the official added.
The projects to be commissioned are part of JSPL's $1.75 billion capital expenditure earmarked for the fiscal year 2012-13. The company has announced investments of $3.5 billion to partially fund an increase in steelmaking capacity to 18 million mt per year from the current level of 4.5 million mt over the next five years.
Apart from the DRI plant in Orissa, JSPL has been building two steel production plants at Patratu in Jharkhand and another near its existing plant at Raigarh in Chattisgarh, along with 4,200 MW captive power plants at each site.