Companies

JSPL gears up to prove no illegal mining was done in Odisha

Suresh P Iyengar Mumbai | Updated on January 09, 2018

mining



Jindal Steel and Power (JSPL) plans to submit documentary evidence to the Supreme Court to prove that it has not done illegal mining in Odisha.

Earlier this month, Supreme Court levied 100 per cent penalty on companies including Tata Steel, JSPL and SAIL for illegally extracting iron and manganese ore in Odisha since 2000-01.

Ravi Uppal, Managing Director and Group CEO, JSPL told Business Line that the company has mined in full compliance with the prevailing environment norms and has not extracted more than specified quantity.

“We will be making our submission soon and hence no financial provision was made,” he said. Tata Steel has provided Rs 617 crore over the mining related litigation during the June quarter.

The Supreme Court judgment was on the basis of a public interest litigation filed by NGO Common Cause.

DEBT RESTRUCTURING

The Board of JSPL approved a proposal to raise Rs 5,000 crore through issue of non-convertible debenture on private placement and another Rs 5,000 crore through issuance of securities. As part of the Strategic Debt Restructuring Scheme, the Board also gave rights to lenders to convert loan into equity in case of default.

Despite high debt of Rs 45,000 crore, the company has managed to service the interest cost of Rs 900 crore in June quarter with the EBITDA of Rs 1,353 crore and generated cash profit of Rs 453 crore.

The company also plans to increase the share capital of the company from Rs 200 crore to Rs 300 crore with additional Rs 100 crore preference shares. These are enabling resolutions that needs shareholder approval, said the company.

DEAL WITH JSW ENERGY ON

JSPL has managed to cut losses in June quarter to Rs 421 crore (loss of Rs 1,240 crore) on the back of better steel realisation and improved power generation. Total income was up 20 per cent at Rs 6,127 crore (Rs 5,125 crore).

Despite volatile coking coal prices, JSPL has managed to ramp up steel production. With the international steel prices quoting $15-20 a tonne higher than India, there is enough headroom for domestic producer to hike prices, said Uppal.

The company is waiting to sign power purchase agreement with state electricity board for its Tamnar plant in Chhattisgarh.

Last year, Naveen Jindal-led Jindal Steel and Power signed a deal with elder brother Sajjan Jindal-owned JSW Energy to sell the 1,000 MW thermal power plant at an enterprise value of Rs 4,000 crore, which could be increased to Rs 6,500 crore if JSPL manages to secure 100 per cent fuel supply for the plant and enters into long-term power purchase agreements.

“As per the deal, we have time till next year to finalise the PPA and would achieve it,” said Uppal.

Published on August 09, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like