Jindal South West (JSW) Steel located in Karnataka state in the south of India has put on hold further expansion plans for its Vijayanagar plant, which already has 10Mt/y capacity.

The reason given is the continuing shortage of iron ore arising from the suspension of mining activities by private companies on the order of India’s Supreme Court.

JSW had plans to expand its Vijayanagar capacity by 2Mt/y. The Rs 26950 (US$497.5M) expansion was proposed to be completed in the current FY2013-14.

To fund the expansion, the company had plans to take Rs 17500M ($323.1M) debt and meet the rest of the investments, about Rs 9450 ($174.5M).