JSW Steel cuts capex plans by 45% to `9k cr for FY21

New Delhi: Concerned over uncertain market conditions, JSW Steel has decided to reduce its capex target for 2020-21 by about 45 per cent to Rs 9,000 crore against its earlier plan of spending Rs 16,340 crore. At 9,000 crore, the capex target is about 12 per cent lower compared to the company's Rs 10,200-crore spend during 2019-20.

In the company's annual report, JSW Steel CMD Sajjan Jindal said the company has undertaken a detailed exercise to prioritise all planned and discretionary spends. The objective is to conserve liquidity, ensure that strategic projects which are in advanced stages of completion are commissioned on priority basis, he said.

Due to the lockdown and its subsequent extensions, project activity at various sites were severely constrained by the non-availability of required manpower and material. The company has thus reduced planned capex on all projects. Its total planned capex for 2020-21 stands at about Rs 9,000 crore, Jindal said in the report.