Construction Industry News
According to the company's green filings, Naveen Jindal-led Jindal Steel & Power (JSPL) is laying the groundwork to add about 15 million tons of integrated cement capacity to its existing steel and energy businesses. According to a source, the plans are currently in the approval phase and are unlikely to be prioritized for 2025.
JSPL's cement operations are currently limited to a grinding unit in Chhattisgarh. JSPL's ambition for 15 million tons per year (MTPA) cement has two implications: first, it will add cement as a full-fledged vertical cement to JSPL's business portfolio, and two, it will represent a significant 10% increase in East India's current cement capacity.
In June, JSPL submitted a proposal for a 2.5 MTPA integrated cement unit in Raigarh, Chhattisgarh. In addition, JSPL's green expansion proposal for its integrated steel plant in Angul, Odisha, includes the addition of 12.5 MTPA cement capacity. JSPL's current cement presence is limited to a 1 MTPA grinding unit in Chhattisgarh.
According to industry data, East India's current cement capacity is 121 MTPA, putting the planned 15 MTPA into context.
"It has been adopted by the government of Odisha," a source said of the Odisha cement facility plan, adding that "the approvals have been sought at once, but cement is unlikely to be considered until the completion of the ongoing steel expansion in Odisha." JSPL currently operates a 6 MTPA steel plant in Angul and plans to more than double capacity there by the end of FY25.
If JSPL's cement ambitions are realized, Naveen Jindal will follow in the footsteps of his older brother, JSW Group promoter Sajjan Jindal. Under the name JSW Cement, Sajjan Jindal's group expanded into cement to use slag from the steel industry. JSW Cement has a current capacity of 17 MTPA. Slag is a by-product of the steel production process and a raw material used in cement production.
In its project proposal for the Chhattisgarh unit, JSPL also stated that it owns a trapped limestone mine in Chilhati in the state's Bilaspur district, from which it plans to source limestone for the production of clinker in the proposed cement unit.
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