JSPL mulling iron ore imports

Facing a shortage of raw material, Jindal Steel and Power Ltd (JSPL) is mulling iron ore imports to run its 2.5 million tonne per annum (mtpa) steel plant at Angul in Odisha.

While JSPL is setting up a 6 mtpa integrated steel plant at Angul, a 2.5 mtpa steel melting shop (SMS) has already been commissioned.

"There is a shortage of iron ore in Odisha. Now, we are thinking of importing iron ore to run the plant. If iron ore is imported in Odisha, then I think it is unfortunate," JSPL chairman Naveen Jindal told media after meeting Odisha Chief Secretary G.C. Pati here Wednesday.

Jindal discussed the raw material problem and progress of the plant with Pati and urged him to provide iron ore to run the plant.

"While the price of iron ore has increased...the price of steel is falling in the international market. If the iron ore price continues to be high, all steel plants in the country will bear the brunt in this situation," said Jindal.

He said there is a need to increase iron ore production to meet the situation and the government will also get additional royalty for the development of the state.

Not only JSPL, many other steel producers setting up their plants in the state are also facing raw material shortage.

Jindal informed that Indian Steel Association will also meet the Odisha government to discuss the steel related issues including iron ore crisis, and try to resolve the problems.

Speaking about the Coal to Liquid (CTL) plant at Angul, he said there is no clarity over setting up the project in the state.

JSPL has invested over Rs.30,000 crore in various projects in the state so far. Terming the cancellation of the coal block as unfortunate, Jindal said they would participate in the bidding process and hope to get the coal block.