Shares of JSW Steel were trading in the red and almost 1% lower on 8 January despite the company’s arm receiving possession of land for setting up a new plant.

In its regulatory filing, the company said that the subsidiary of the company, JSW Utkal Steel, has received possession of 2,677.80 acres of land from the Odisha government for setting up a greenfield integrated steel plant in Jagatsinghpur that will have a per annum capacity of 13.2 million metric tonnes. The land parcel is closer to the Pradip port in Odisha.

The company required 2,950.31 acres of land for the plant, from which 2,677.80 acres was forest land, whereas the non-forest land of 272.51 acres has already been allotted to the subsidiary by the government.

Earlier last year, the company had flagged that the capital expenditure for the 13.2 million tonnes per annum integrated steel plant project is expected to stand at Rs 65,000 crore, and the company will begin phase-wise work once the possession is received for the said land.

In December, the company’s consolidated crude steel production for November 2023 stood at 22.04 lakh tonnes, which is an 11% year-on-year increase from the same month last year.

At 11:42 am, the shares of JSW Steel were trading 0.40% lower at Rs 826.10 on NSE.