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JSW puts INR 4200 crore Andhra aluminum project on hold
Edited by : AL CIRCLE
1 min read
In a bid to remain focused on augmenting steel making capacity, Sajjan Jindal led JSW Group has put its proposed INR 4,200 crore Greenfield aluminum project on hold.
Mr Seshagiri Rao joint MD and group CFO said that “We are currently not pursuing our aluminum expansion. That project is on hold as of now.”
Mr Rao said that JSW Aluminum was incorporated on July 8th 2005, as a special purpose vehicle to set up 1.5 million tonnes alumina plant in Vizianagaram district Andhra Pradesh. The plant was expected to become operation in April 2010. The company had earlier said that the project cost of INR 4,200 crore would be funded via mix of debt and equity of this INR 3,000 crore debt would be raised from various financial institutions.
However, hit by the economic slowdown and short of funds, the group in 2009 had slowed down on its other expansion plans including aluminum till the market revived.
Mr Seshagiri Rao joint MD and group CFO said that “We are currently not pursuing our aluminum expansion. That project is on hold as of now.”
Mr Rao said that JSW Aluminum was incorporated on July 8th 2005, as a special purpose vehicle to set up 1.5 million tonnes alumina plant in Vizianagaram district Andhra Pradesh. The plant was expected to become operation in April 2010. The company had earlier said that the project cost of INR 4,200 crore would be funded via mix of debt and equity of this INR 3,000 crore debt would be raised from various financial institutions.
However, hit by the economic slowdown and short of funds, the group in 2009 had slowed down on its other expansion plans including aluminum till the market revived.
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