JSW Steel has set aside the expenditure of 20,000 crore RS capital in the current fiscal and hopes that headwinds such as export duties for steel and high coal prices tend to be short -lived, said a high -ranking company.

The leading steel maker in this country does not expect “substantial easing” of metal prices in the domestic market from the current level, except the price of coal coal, the main raw material for steel making, while in the international market, he said.

The main press is the price of volatile coke and export duty on steel. However, we hope this is short. There will be moderation in exports but added steel exports will have a smaller impact. Until now, we remain optimistic and the capex plan of 20,000 Crore Rs in the fiscal is still intact, the Director of the Jsw Steel Joint and CFO Seshagiri Rao told PTI in a telephone interview.

The company has set aside the capital expenditure of RS 15,000 Crore for 2021-22 as part of its plan to increase capacity. Last year, it also paid more than RS 19,000 Crore to conclude the takeover of Bhushan’s strength and steel.

In the midst of a high capex plan, the company’s debt level will not increase significantly from the latest from RS 56,700 Crore because of “payments from internal accruals”, the official said.

The new government has ruled out the customs of the import of several raw materials, including coal coal and ferronickel, which is used by the steel industry, a step that is expected to reduce costs for the domestic industry and reduce prices.

Also, to increase domestic availability, the export of iron ore has climbed up to 50 percent, and several steel intermediaries up to 15 percent.

If such orders continue for a long time, there will be less utilization of 150 million tons of capacity in the industry because it is built not only for domestic demand and import substitution but also for exports, Rao said.

At least 11-12 percent of industry capacity is built targeting the export market. And in today’s fiscal, we have the potential to duplicate this. Therefore, if the export duty continues for a longer period Baja, “Rao explained.

Steel exports were 18.37 million tons in 2021-22.

JSW Steel has a plan to increase its capacity to 37.5 million tons by FY25 and 45 million tons in 2030.

At present, he has a capacity of around 21.47 million tons.

Rao said the idea behind the government’s steps to collect 15 percent of export tasks to tame inflation was “enough” but the fact was that “steel contributions were very limited” for inflation.

Out of manufacturing contributions in a wholesale price index of 64.2 percent, steel is only 1.27 percent,” Rao said, questioning “why only steel was chosen and no similar action was taken for non-Ferro metals”.

He said the export duty on steel was collected again in 2008 and fixed between one and five months depending on the product category.

JSW steel exports rose more than nine percent in the quarter ended on March 31, 2022.

Speaking of raw materials, the official said the supply of iron ore from prisoner moods would increase from 46 percent to 53 percent this year.