Jindal seeks regulation of iron exports
Bangalore, Aug 25: India's leading steel maker Jindal Group today pleaded for restrictions in exports of iron ore from the country to help domestic steel industry increase production.
Jindal Steel Works (JSW) Vice Chairman and Managing Director Sajjan Jindal told newsmen on the sidelines of a workshop on Steel in Construction that currently the country was exporting 90 million tonnes of superior grade iron ore, leaving the domestic industry a share of only 75 million tonnes of ore mined in the country.
Stating that channalisation of exports could offer a possible solution, he said that availability of iron ore could ensure faster expansion of domestic steel producers. China is a major gobbler of Indian iron ore.
He said that there was no control on ironore exports in the country today and this had led to increased illegal mining. Neither the Central nor the State Governments were benefiting any revenue from these exports he said and added that the States should clamp down heavily on illegal mining and ensure they earn adequate revenue from the sector.
Mr Jindal said that the Centre should come out with an appropriate policy direction in this regard.
On the Jindal's group expansion plans, he said that the Group was planning a greenfield Steel project in Jharkhand with a capacity of ten million tonnes. It aimed to emerge as a 25 million tonne producer by 2015.
On the Jindal Vijayanagar Steel plant he said that the expansion of the unit to four million tonnes from 2.5 million tonnes was completed last month and work had been initiated to further expand the capacity to seven million tonnes. Over the next four years the plant would see an investment of around 20,000 crore, mostly through internal accruals and debt to raise it to a final capacity of 10 million tonneds, which would make Jindal Vijayanagar as the larger Steel producer in the country in a single location.
Replying to a question he said the company had currently no plans to mergers or acquisitions abroad, but wanted to concentrate expansion within the country to cater to the growing demand.