JSW Steel's Dolvi Plant to Undergo Third Phase Capacity Expansion

JSW Steel's total capacity will reach 42 million tonnes by 2027 with this expansion which costs around ₹19,000 crore and company’s most cost-effective brownfield expansions.

The third phase of capacity expansion at JSW Steel’s Dolvi plant in Maharashtra will be one of the company’s most cost-effective brownfield projects, JSW Steel CEO Jayant Acharya said. The expansion, which will add another five lakh tonnes, will cost a little over ₹19,000 crore. This strategic investment aims to meet the growing demand for speciality precious metals.

Acharya emphasized the cost-effectiveness of the project saying, “It will be very cost-effective because some of the infrastructure is already there (and) some of the equipment is already there as part of Phase II.” That way this phased approach uses existing resources to reduce additional costs.

With this investment, JSW Steel’s total capital expenditure will exceed ₹64,000 crore over the next three years. The expansion at Dolvi will bring the plant’s total capacity to 15 million tonnes per annum by September 2027, contributing significantly to the company’s pan-India target of 42 million tonnes.

The National Steel Plan 2017 projects India’s steel production to reach 300 million tonnes by 2030-31. In line with this vision, JSW Steel has targeted a capacity of 50 million tonnes, while Tata Steel has set a target of 40 million tonnes.

"In Dolvi, we will hold the capacity at 15 million tonnes," said Acharya. "We have brownfield options in Vijaynagar, BPSL, and Jharsuguda, which gives us the leverage to go beyond 50 million tones," he added. This strategic flexibility allows JSW Steel to expand further its capacity as needed.

The cost of adding five million tonnes of capacity at Dolvi will be $460 per tonne, well below the global average of $700 per tonne JSW Steel plans to mainly finance the expansion by domestic reserves, ensuring economic stability as it pursues growth.