The Board of JSW Infrastructure has recently approved the acquisition of an under-development slurry pipeline project (port connectivity) from JSW Utkal Steel Limited for Rs 17 billion. This is a 20-year long-term take-or-pay agreement for using the pipeline to transport iron ore.
The 30 million tonnes per annum (mtpa) project for 302 km length runs from Nuagaon to Jagatsinghpur in Odisha, and will connect directly to the upcoming Jatadhar Port in Odisha. The valuation for the project includes the fair value of expenses incurred up to May 31, 2024, and the costs anticipated after May 31, 2024, until the actual transfer date.
The 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.