“After the BPSL setback, JSW Steel may go back to the drawing board and rework its plans. The state government, on its part, must see that investor confidence is not impacted,” said an industry insider.
Apart from new projects, JSW Steel had also planned expansion of BPSL from 4.5 MTPA to 10 MTPA and proposed Paradip plant’s capacity from 13.2 MTPA to 24 MTPA for which an MoU has already been signed.
After acquiring BPSL, JSW had ramped up its crude steel output from 2.9 MTPA to around 4.5 MTPA and provided direct or indirect employment to around 20,000 people. “With BPSL’s fate hanging in the balance, JSW could face production cuts, dent in cash flow and challenges in debt servicing. The company could revisit its strategy,”…
