Jayaswal Neco Industries board has approved a major capacity expansion project involving the setup of a new 1.50 MnTPA straight-grate pellet plant with an investment of ₹720.00 crores. The board meeting held on April 24, 2026, addressed this significant strategic decision aimed at expanding the company's pellet production capabilities at its integrated steel plant in Siltara, Raipur.

Major Capacity Expansion Project

The company announced the establishment of a new 1.50 MnTPA straight-grate pellet plant along with a new raw material handling system and other associate facilities. This expansion will double the company's pellet production capacity, adding to the existing 1.50 MnTPA pellet plant that currently operates at around 90% capacity utilization.

Investment and Financing Structure

The ₹720.00 crore project will be financed through a combination of debt and equity funding. The company has outlined a structured financing approach to support this major capital expenditure initiative.

Strategic Rationale and Timeline

The project is designed for crucial business expansion and optimal utilization of iron ore from the company's captive iron ore mines. The new pellet plant will feature advanced straight-grate technology along with comprehensive raw material handling systems and other associated facilities.

Regulatory Compliance and Approvals

The announcement was made in compliance with Regulation 30 of the SEBI Listing Regulations, 2015. The project implementation is subject to approval from existing lenders and successful financial closure. The company has provided comprehensive disclosure as required under Schedule III of the listing regulations, ensuring transparency in its expansion plans.

This capacity expansion represents a significant milestone in the company's growth strategy, positioning it to better serve market demand while leveraging its integrated steel plant infrastructure and captive raw material resources.

Jayaswal Neco Industries Limited has submitted its quarterly compliance report to stock exchanges, confirming the complete utilization of Rs. 1,800 crores raised through Non-Convertible Debentures (NCDs) with no deviations from stated objectives. The report covers the quarter ended 31st March, 2026, following the fund raising completed on 12th December, 2025.

Fund Raising and Compliance Details

The company issued unlisted, unrated, secured, redeemable, fully paid up Non-Convertible Debentures on a private placement basis, raising Rs. 1,800 crores. The statement was filed pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has been duly reviewed by the company's Audit Committee.

Fund Utilization Breakdown

The company has deployed the entire Rs. 1,800 crores as per the original allocation plan. The subscription proceeds were utilized for repayment of current outstanding debts, payment of costs and expenses related to the NCD issue, and other corporate purposes.

Regulatory Compliance and Oversight

The fund utilization statement confirms adherence to the original objectives outlined during the NCD issuance. The company reported that no monitoring agency was applicable for this fund raising exercise. Both the Audit Committee and auditors provided nil comments, indicating satisfactory compliance with the stated fund utilization plan.

The administrative expenses component included certification costs, statutory payments, and logistics costs related to the NCDs, along with maintaining minimum balance requirements in the designated account. The company secretary Ashish Srivastava and Chief Financial Officer Kapil Shroff signed off on the compliance documentation submitted to both NSE and BSE.