Sajjan Jindal controlled JSW Steel plans a capital expenditure of Rs 12,000 crore for the next two years to increase its production capacity by 3.7 million tonnes per annum (mtpa) to 18 mtpa.
The firm, which has earmarked Rs 7,500 crore capex for the current fiscal, also plans to raise up to Rs 18,000 crore for part-financing capex and retiring expensive debt, it said in a notice to shareholders ahead of annual general meeting.
“The company has planned to incur capital expenditure aggregating Rs 12,000 crore over next two years to increase the capacity from 14.3 mtpa to 18 mtpa (subject to necessary approvals), besides backward integration projects, cost reduction and efficiency improvement projects,” it said.
It is, therefore, in the interest of the company to pro-actively arrange long-term funding to meet the planned capital expenditure and other corporate purposes, including refinancing of expensive debt to reduce interest costs and to meet any unlikely shortfall in unforeseen circumstances,” it said.