Jindal pleads for conducive environment for business

In India, there are too much regulatory hurdles for doing businesses and the government need to create a conducive environment for growth of business and the nation, said Naveen Jindal, chief of Jindal Steel and Power Ltd (JSPL).

"Steel industry is a highly regulated one because we need to interact with the government starting from raw material level such as coal, iron ore mining to establishment of power plant and sale of electricity. The government need to create a conducive environment where we can help each other for prosperity of the nation," he said speaking at a seminar here.

JSPL has steelmaking units in Chhattisgarh and Odisha and has interest in coal and iron ore mining in these states along with focus on power production. It has been facing raw material supply problems due to stringent laws imposed on iron ore mining. The company is hoping that with the adoption of new rules such as the MMDR amendment ordinance, the situation will be more investor friendly soon.

"The recent proposals approved by the Centre and the state government will help creating better environment (for steel manufacturing and other businesses)," he added.

In the MMDR ordinance, the Centre has proposed that the mines will be sold through auction instead of earlier system of leasing out on preferential basis. Similarly, the Odisha government has taken a decision that all lapsed lease will be put up for sale to steel units not having any captive mines.

Jindal said his company is in the process of expanding its Odisha capacity to 6 million tonne per annum by 2016, up from 2 mtpa at present and will need more raw material for it.

JSPL has a captive iron ore mine and a committed ore supplier, Sarada mines in Odisha. However, due to closure of Sarada mines and expansion proposals, it is in need of another lease to meet its requirement. Currently, it is getting raw material supply from the state-run miner Odisha Mining Corporation (OMC) through auction process.

"We are happy with the raw material linkage system of Odisha. We hope we will get an iron ore lease soon. Even if we do not get it, we will import iron ore to make steel here," he said.

The firm is facing acute iron ore shortage after closure of the mine of its key supplier and other private mines. It was sourcing iron ore fines from Thakurani mine of Sarada for its five million tonne per annum (mtpa) pellet plant at Barbil and lumpy ore for its 3 mtpa steel unit at Raigarh in Chhattisgarh.

Jindal has even met chief minister Naveen Patnaik three times last year to discuss the raw material supply issues.