JSW Infrastructure has approved the purchase of an under-development slurry pipeline project from JSW Utkal Steel for ₹1,700 crore that will boost connectivity for the upcoming Jatadhar Port in Odisha.
The 30-mtpa pipeline project for a length of 302 km runs from Nuagaon to Jagatsinghpur in Odisha and will connect directly to Jatadhar Port in Odisha. The company has entered into a 20-year long-term take-or-pay agreement with the subsidiary of JSW Steel, for using the pipeline to transport iron ore
Work on 122 km of the project has already been completed. The project’s development is scheduled for completion in early 2027 and commercial operations are expected to commence in April 2027, the company said.
The valuation includes the fair value of expenses incurred up to May 31, 2024, and the costs anticipated after that until the actual transfer date.
The port connectivity project, aligns with the company’s growth strategy, offering robust annual cash flows and lucrative mid-teens internal rate of return. The project also offers a sustainable solution for transporting iron ore underground, significantly reducing carbon emissions and providing substantial environmental benefits, it added.