Naveen Jindal presses for raw material security for steel units in Odisha

Bhubaneswar: Jindal Steel & Power Ltd Chairman Naveen Jindal today pressed for raw material security to steel plants as well as for reserving iron ore mines for companies which have set up steel plants in Odisha.

“Companies which have invested thousands of crores in steel plants and have created employment in thousands should be given preference in iron ore auction. We have requested for giving iron ore mines first for captive consumption and then for merchant mining,” said Jindal after a meeting with Odisha Chief Secretary Asit Kumar Tripathy and Secretaries of Steel & Mines, Industries, Water Resources and other government officials at the Lok Seva Bhawan in Bhubaneswar.

JSPL has invested Rs 47,000 crore in Odisha to set up the largest steel plant in the State. It does not have captive iron ore and coal mines for the plant. “Our investment in Odisha needs raw material security to become viable,” he added.

He also informed that JSPL buys about one million tonne iron ore every month in Odisha. “This makes JSPL the largest buyer of iron ore in the State,” he added.

He also demanded for reduction in iron ore price because of fall in global steel price. “Steel price has been reduced by about 30%. But iron ore price has not been reduced accordingly. There is no reduction in price of coal by Coal India. The government needs to ensure that people who have invested in the State are taken care of,” Jindal commented.

For the first time in the world, JSPL has set up a coal gasification plant along with a two MTPA DRI plant on the basis of the coal block allotted to it in Angul. Since the coal block was cancelled by Supreme Court, Jindal was hopeful that the company would get coal block, if the Government of India auctions coal block for steel companies and coal gasification.