JSW Steel is undergoing abrupt stoppage of iron ore from NMDC which led the former to cut the production capacity by 30% at its Vijayanagar plant in Karnataka. The abrupt disruption of supplies to JSW Steel, long term customer by NMDC cut the lifeline to run the furnaces in safe condition. The apex court directed to sell iron ore produced by NMDC through e-auction by the monitoring committee irrespective of long term contracts. NMDC had stopped supplies to JSW Steel, following the order of Supreme Court.
Vijayanagar plant has a capacity to produce 10 million tonnes of steel per annum. NMDC is the only company that is allowed to produce iron ore in Karnataka by the apex court, which banned mining due to large scale environmental degradation of the areas.
At present JSW is producing only 9,000-10,000 tonnes of steel from Vijayanagar unit against an installed capacity of 28,000 tonnes per day. It requires about 16,000 tonnes of iron ore per day to run its 10 million tonne per annum Vijayanagar plant.
Company Name | CMP |
---|---|
Tata Steel | 140.85 |
JSW Steel | 918.45 |
SAIL | 116.15 |
Jindal Stainless | 719.70 |
Jindal Saw | 300.40 |
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