Maharashtra is the new focus of JSW Steel.

JSW Steel Ltd. is shifting its focus to its smaller steel plant in Maharashtra, which the company thinks is better placed to support its expansion plans, compared with its flagship plant in Karnataka, where difficulty in raw material sourcing has curtailed growth.

The 3.3 million tonne (mt) Dolvi plant in the Raigad district of Maharashtra, that came to JSW Steel from its acquisition of Ispat Industries Ltd. in 2010, is seeing new investments, while the main plant in the Bellary district of Karnataka, with a 10 mt capacity, is still waiting to secure raw material via acquisition of iron ore mines.

'The new mother plant will be Dolvi,'said a senior executive in JSW Steel, not wanting to be named since plans have not been publicly announced. 'There is a lot of activity taking place there.'

A capacity addition of 1.7 mt has been planned for Dolvi, which will push up the total capacity at the plant to 5 mt. A second company official, who also did not want to be named, said the plan is likely to be implemented in the next few months.

LIVEMINT