JSW Steel to set up ₹ 2,100-crore iron ore pipeline in Karnataka
JSW Steel on Thursday said its board has approved the plan to set up a Rs 2,100 crore slurry pipeline in Karnataka to transport iron ore and coal for its 12 MT integrated steel plant in the state.
"As the availability of iron ore at a fair price within Karnataka is of paramount importance for long term sustainability of the company and environment friendly transportation of iron ore, the board of directors has given an approval to set up a Slurry Pipeline to transport iron ore from coastal Karnataka to the Vijayanagar works," JSW Steel said in a statement.
It said this slurry pipeline can be set up within 24 months at an estimated cost of Rs 2,100 crore. This will facilitate transporting iron ore through slurry pipeline at a very competitive 15 per cent cost of alternate means of transport.
"This strategic project will enable the company to source almost 50 per cent of the current requirement of iron ore at Vijayanagar works from outside Karnataka either from imports or from Odisha / eastern sector at prices lower than the prevailing prices in Karnataka," the statement said. JSW Steel has been operating its 12 MTPA (million tonne per annum) integrated steel plant at Vijayanagar works in Karnataka.
"The plant has been set up with substantial investments relying upon consistent supply of iron ore at a fair price," the company said.
The Supreme Court, in the backdrop of measures undertaken to curb illegal mining in this region, had imposed several restrictions, which inter-alia included a cap of mining 30 MTPA of iron ore per annum within Karnataka.