New Delhi | September 30, 2025, 10:15 IST — Filed via company announcement on September 29, 2025, capacity expansion update.
Jindal Steel & Power Ltd (JSPL) has commissioned a new 250-ton Basic Oxygen Furnace (BOF) at its integrated steelmaking complex in Angul, Odisha, boosting its crude steel capacity to 9 million tonnes per annum (MTPA). The BOF adds approximately 3 MTPA of steelmaking ability, complementing the company’s recent commissioning of a 5 MTPA blast furnace at the same site.
With this commissioning, the Angul plant becomes one of India’s largest single-location steel hubs, and JSPL has taken another step towards its stated ambition of reaching 12 MTPA crude steel capacity by FY26.
Business Significance
The new BOF will allow JSPL to convert the expanded hot metal output from its blast furnace into crude steel more efficiently, tightening integration across the value chain. By pairing blast furnace hot metal with oxygen steelmaking technology, the company expects to improve productivity, reduce costs, and deliver higher-quality steel grades.
For JSPL, which competes with Tata Steel, JSW, and SAIL in the domestic market, scale is a critical differentiator. Larger crude steel capacity not only positions the company to meet surging infrastructure demand but also strengthens its export footprint, particularly in value-added long and flat products.
| Unit | Capacity | Commissioned |
|---|---|---|
| Blast Furnace (Angul) | 5 MTPA | July 2025 |
| Basic Oxygen Furnace (BOF) | 3 MTPA | Sept 2025 |
| Total Crude Steel (Angul) | 9 MTPA | FY25-Q3 |
What to Watch
- Utilisation Rates: Commissioning is only the first step. The real metric is whether the new BOF operates consistently at 80–90% load factors.
- Margins & Efficiency: JSPL will need to demonstrate that higher throughput translates to stronger EBITDA margins, especially amid volatile coal and iron ore prices.
- Capex Discipline: The expansion is part of a broader roadmap to 12 MTPA. Investors will look for timely commissioning of supporting units like coke ovens, power plants, and logistics tie-ins.
- Demand Environment: Infrastructure spending and manufacturing growth will be critical in absorbing incremental capacity. Any slowdown could pressure volumes and pricing.
- Debt Metrics: With large capital expenditure behind the scale-up, the balance sheet must sustain healthy leverage ratios and interest coverage.
Risks
- Operational Teething Issues: New BOFs often face stabilisation problems, yield losses, and downtime during ramp-up.
- Input Price Volatility: Sharp swings in iron ore, coking coal, or energy costs could offset efficiency gains.
- Environmental/Regulatory Hurdles: Emission norms and clearance delays remain an ever-present challenge for large steel complexes.
- Global Headwinds: A slowdown in export markets could mute the benefits of higher capacity, especially if domestic demand underperforms.
Outlook
The commissioning of the 250-ton BOF marks a significant milestone for JSPL. Coupled with its new 5 MTPA blast furnace, the Angul complex has effectively doubled in scale over the past year. This positions the company strongly to meet India’s infrastructure-driven steel demand and to pursue downstream growth in high-margin value-added segments.
If utilisation ramps smoothly and supporting infrastructure is synchronised on time, the additional capacity could materially lift revenues and profits from FY26 onwards. For investors, the next few quarters will be key to assessing utilisation trends, margin capture, and debt servicing.
In a cyclical industry where timing expansions can make or break shareholder value, JSPL’s Angul plant may emerge as a benchmark for mega steel projects in India.
