New Delhi: JAW Steel has drastically cut its investment plan for the current financial year 2020-21 in view of the prevailing market conditions. The company has said that it will now invest Rs 9,000 crore in the current financial year.
It was earlier planned to spend Rs 16,340 crore. In this way, the investment of the company in the current financial year will be about 12 percent less than the Rs 10,200 crore of the previous financial year 2019-20. In the company’s annual report, JSW chairman and managing director Sajjan Jindal said that the company has set priorities for all its planned and discretionary expenses. He said that the motive behind this is to save cash and ensure that all the projects which are in the advanced stage are completed and commissioned on priority basis.
Jindal said in the report that project activities at various sites have been severely affected due to the enforced lockdown due to corona virus and non-availability of manpower for several times. As such, the company has reduced its investment plan to Rs 9,000 crore for the current financial year. The report says that the economic impact of the epidemic has not only affected the company’s new fiscal year production target, but has also led to a shortage of manpower and expertise to continue capacity expansion projects.
