Jindal Steel to set up new rail mill in Odisha
2 min read . Updated: 13 Apr 2023, 11:05 PM IST
Premium- JSPL currently supplies 260-meter rails to Indian Railways, dedicated freight corridors, and other critical projects of national importance from its Raigarh mill.
Mumbai: Jindal Steel and Power Ltd (JSPL), the country’s third largest private steelmaker, on Thursday, announced its plan to double the firm’s rail manufacturing capacity to 2.2 million tonnes by commissioning a new rail mill in Angul, Odisha.
The country’s only private rail manufacturer, in an exchange filing, said the Odisha plant will have a capacity to produce 1.2 million tonnes of rails annually.
“JSPL is proactively adding and augmenting further Rail manufacturing capacity to support the modernization of the Indian Rail network," said Bimlendra Jha, MD, JSPL.
Jha said JSPL is committed to supporting the government’s “Gati Shakti Yojna" initiative, by making available domestically produced import substitution products at competitive prices.
JSPL did not disclose the amount it will invest for this project.
The company’s current 1 mtpa capacity of the rail mill in Raigarh, Chattisgarh produces specialty rails such as 1175 HT (heat-treated) and R350 HT, which are essentially superior-grade rails meant to handle heavier loads and speedier applications. The Raigarh plant also produces asymmetric and 1080HH (head-hardened) rails, which are used for heavy axle loads of over 25MT. These rails are used primarily by various metro rail corporations, high-speed corridors, and bullet train projects.
JSPL currently supplies 260-meter rails to Indian Railways, dedicated freight corridors, and other critical projects of national importance from its Raigarh mill.
In January, 2019, Odisha government had approved nine projects that required a total investment of over ₹1.53 trillion. Subsequently, ArcelorMittal Nippon Steel India Ltd had proposed to set up a 7-MTPA plant in Jagatsinghpur with an investment of ₹38,000 crore.
The ArcelorMittal proposal is expected to create employment for more than 11,000 in Odisha, according to a PTI report, citing the company’s offials.
Currently, there are 51 steel plants in Odisha with a production capacity of 33.1 MTPA.
JSPL’s latest announcement assumes significance in the backdrop of Indian Railways’ plan to upgrade railway track systems in an effort to enable them carry more than 25MT axle load and withstand speeds of up to 200 km/hour.
JSPL’s head-hardened specialty grade rails are currently utilized by almost all metro rails and regional rapid transit systems across the country. These rails are also used in special projects undertaken by national civil-military system to connect remote locations that are connected through difficult terrains, such as the USBRL Project (J&K) and Sivok - Rangpo Project in West Bengal.
“Even though there is surplus rail capacity in India, there are markets abroad we will be looking to feed as well after meeting India’s requirements", added Jha.
Shares of JSPL was trading marginally lower at ₹557.9 apiece on NSE in a weak market on Thursday.