The Naveen Jindal-led Jindal Steel & Power (JSPL) is putting its groundwork in place to add about 15 million tonnes of integrated cement capacity to its existing steel and power business, according to the company’s green filings. At present, the plans are at the clearance stage and unlikely to take priority before 2025, said a person in the know.
An email query sent to the company on Tuesday remained unanswered.
JSPL’s presence in cement is currently limited to a grinding unit in Chhattisgarh. JSPL’s ambition for 15 million tonnes per annum (MTPA) of cement can have two implications: one, add cement as a full-fledged vertical to JSPL’s business portfolio and two, make a notable 10 percent fresh addition to east India’s current cement capacity.
In June, JSPL made a green clearance-related proposal for a 2.5 MTPA integrated cement unit in Raigarh, Chhattisgarh. Also, JSPL’s green proposal for expansion at its integrated steel facility at Angul in Odisha includes the addition of 12.5 MTPA of cement capacity. JSPL’s current presence in the cement business is limited to a 1 MTPA grinding unit in Chhattisgarh.
To put the planned 15 MTPA in context, east India’s current cement capacity stands at 121 MTPA, according to industry data.
“It has been passed by the Odisha government,” said a person in the know, referring to the Odisha cement facility plan, who did not wish to be identified, adding, “The clearances have been sought in one go, but cement is unlikely to be considered until the completion of the ongoing steel expansion in Odisha.” JSPL currently operates a 6 MTPA steel-making unit at Angul and plans to double capacity there by the end of FY25.
If JSPL’s cement ambitions come through, Naveen Jindal will walk in the footsteps of elder brother Sajjan Jindal, promoter of the JSW Group. Sajjan Jindal’s group expanded into cement, under JSW Cement, in a bid to utilise slag produced from the steel business. JSW Cement currently operates a capacity of 17 MTPA. Slag is a byproduct of the steel-making process and a raw material used in cement manufacturing.
In its project proposal seeking green clearances for the Chhattisgarh unit, JSPL also said it is in possession of a captive limestone mine at Chilhati located in Bilaspur district of the state, from which it plans to source limestone from for manufacturing clinker at the proposed cement unit.
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