JSW Infra Bags ₹1,700 Crore Slurry Pipeline Project

JSW Infrastructure has acquired an under-development slurry pipeline project from JSW Utkal Steel for ₹1,700 crore. This strategic purchase aims to enhance connectivity for the upcoming Jatadhar Port in Odisha. The 30-million-tonne-per-annum (mtpa) pipeline, stretching 302 km from Nuagaon to Jagatsinghpur, will directly link to Jatadhar Port, facilitating efficient iron ore transport.

A 20-year take-or-pay agreement has been secured with a JSW Steel subsidiary, ensuring the pipeline's utilization for iron ore transportation. With 122 km already completed, the project is set to be fully developed by early 2027, and commercial operations are expected to begin in April 2027. This agreement guarantees stable, long-term revenue for JSW Infrastructure.

The ₹1,700 crore valuation includes the fair value of expenses incurred up to May 31, 2024, and projected costs until the transfer date. This investment aligns with JSW Infrastructure’s growth strategy, promising strong annual cash flows and a lucrative mid-teens internal rate of return.

In addition to financial benefits, the project offers a sustainable solution for iron ore transport. The underground pipeline significantly reduces carbon emissions compared to traditional transport methods, providing substantial environmental advantages.

Overall, this acquisition represents a strategic move for JSW Infrastructure, bolstering its connectivity infrastructure and supporting its long-term growth and sustainability goals.

News by Rahul Yelligetti