The Hindu Business Line : Iron ore exports must be restricted: Sajjan Jindal

Iron ore exports should be restricted to enable the domestic steel sector to ensure smooth capacity expansion. Stating this here on Friday, Mr Sajjan Jindal, Vice-Chairman and Managing Directior of Jindal Steel Works, however, disagreed with the demand made for nationalisation of mining sector to ease the supply position. He said this in an answer to question whether he supported the recent statement made by the Karnataka Chief Minster, Mr H.D. Kumraswamy, in the wake of the controversy raging over the illegal mining in Bellary region.

Talking to newspersons on the sidelines of a one day workshop on "Steel in Construction" here, Mr Jindal said there was no control on iron ore exports in the country and this had led to increased illegal mining. Neither the Central nor the State Governments were benefiting from these exports. He said that the States should clamp down heavily on illegal mining and ensure they earn adequate revenue from the sector.

High on exports

He said 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.

On the Jindal group's expansion plans, he said that it was planning a five million-tonne greenfield project in Jharkhand. The proposal to expand its capacity in the Jindal Vijaynagar Steel (JVS) plant in the State to ten million tonnes and with the existing capacity in its other units, the Group would account for an aggregate capacity of 25 million tonne by 2015. The group would be investing Rs 20,000 crore on its expansions.

He said expansion work in the JVS plant had been initiated and the investment would be mostly through internal accruals and debt.

Replying to a question he said the company had currently no plans of mergers or acquisitions abroad, but wanted to concentrate on expansion within the country to cater to the growing demand.

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