Naveen Jindal envisions Africa with steel mill and power plant

by MMC
0 comment

NEW DELHI :Billionaire Naveen Jindal, through a private unit, plans to set up a steel mill in Nigeria and a power plant in Botswana to serve the African market, two people familiar with the matter said.

Billionaire Naveen Jindal, through a private unit, plans to set up a steel mill in Nigeria and a power plant in Botswana to serve the African market, two people familiar with the matter said.

As part of the plan, Vulcan Steel, a private company of the Jindal family, has decided to build a steel plant with a capacity of 3 million tonnes per annum (mtpa), while Jindal Power Ltd, another private unit, will install the thermal plant. power unit, which will produce up to 600 megawatts (MW) at its maximum capacity. Entities controlled by Jindal have secured agreements to purchase minerals and electricity in both countries.

Hi! You are reading a premium article

As part of the plan, Vulcan Steel, a private company of the Jindal family, has decided to build a steel plant with a capacity of 3 million tonnes per annum (mtpa), while Jindal Power Ltd, another private unit, will install the thermal plant. power unit, which will produce up to 600 megawatts (MW) at its maximum capacity. Entities controlled by Jindal have secured agreements to purchase minerals and electricity in both countries.

This wouldn’t be the first time that Naveen Jindal has ventured abroad. However, the group’s entry into the Latin American market did not go as planned.

“The plan is to set up a steel plant primarily to produce hot rolled coils with a capacity of 3 MTPA. No one else has a hot-rolled coil manufacturing plant in Nigeria, where requirements are met through imports,” said one of the two people on condition of anonymity.

While the company has not disclosed the investment required for the steel plant, some reports suggest that the group has committed to investing $3 billion in Nigeria.

“It would be too early to comment on the investment figures, as many decisions still need to be made,” he added.

A second person said Botswana Power Corp. had signed a power purchase agreement with Jindal Energy Botswana, for 300 MW of electricity over a period of 30 years. The investment is under Jindal Power.

“In accordance with the agreement, Jindal Energy Botswana will design, construct, finance, maintain, own and operate the 300MW thermal power plant, which is expected to deliver first electricity to the national grid in the first quarter of 2028. The second phase further adds 300 MW more, for a total of 600 MW,” the second person added.

In addition to the power station, the group also holds a license to mine approximately 3 billion tonnes of coal in the East Mmamabula coalfields, and plans to carry out an initial extraction of 4.5 million tonnes of coal per year , he added.

An email sent to the Naveen Jindal group went unanswered.

Naveen Jindal is among the many Indian businessmen exploring opportunities in Africa. Many companies are also evaluating prospects on the continent, mainly in the electricity and steel sectors. Jindal’s pivot to Africa coincides with India’s efforts to counter China’s influence on the continent and, notably, the African Union’s full membership in the G20 under India’s presidency.

Jindal Group expects consumption to increase in Africa, with increased investment from Europe and America following their inclusion in the G20.

“We have seen that consumption in Africa will increase significantly. So we hope that the steel industry in Africa will grow and mature over the next 5 to 10 years,” one of the people added. Africa currently consumes 5 million tonnes of steel and is growing at a higher rate. at 10%.

As Africa emerges as the new frontier for investment from China and the rest of the world, there are potential risks, including political and monetary volatility and insufficient infrastructure. However, the region’s market potential and availability of abundant raw material resources are compelling enough for companies to outweigh the drawbacks. The steel industry is also becoming a regional issue, with the Essar group considering setting up units in Saudi Arabia. Jindal’s Vulcan unit is also investing in its steel unit in Oman, as demand for steel for building new infrastructure in the Middle East grows rapidly.

You may also like

Leave a Comment

The news website dedicated to showcasing Africa news is a valuable platform that offers a diverse and comprehensive look into the continent’s latest developments. Covering everything from politics and economics to culture and wildlife conservation

u00a92022 All Right Reserved. Designed and Developed by PenciDesign