The financial year 2016-17 has ushered in a new dawn for JSPL. A series of initiativestaken over the past two years has started showing results. The early signals of ourefforts are visible in the financial results of 2016-17 where the Company has posted itshighest ever revenues backed by highest ever steel production and highest ever exportsales in the history of JSPL.
The cancellation of captive coal blocks in August 2014 and the subsequent imposition ofa retrospective additionallevy of ~ Rs 3300 crore JSPL had to pay under a court rulinghad an adverse impact on the Company's business model. Many of our long-term investmentshad to undergo a course correctionto tune them in line with the unforeseen realities wehad to face. The transformation did need a reasonable time for resurrection. I am happy toshare that the laps of transition have been completed successfully. On behalf of the50000-strong workforce and a socio-economic ecosystem of 1 lakh families anchored byJSPL I sincerely thank each one of you for reposing in confidence in our ability toresurge through the most challenging times JSPL has faced in its lifetime.
Since inception the driving force behind the success of JSPL has been the profoundvision of our Founder Chairman Shri O.P. Jindal for Building A Nation of Our Dreams. TheDream to be an active participant socio-economic growth story of the world's largestdemocracy in its journey to emerge as an economic superpower. The Dream that is shared bythe entire JSPL stakeholder community. This is the very purpose that keeps all Jindalitesmotivated enthused and passionate of what they do; and fuels their quest to constantlyfind ways to improve and outdo their earlier performance. It is our commitment to all ourstakeholders that we will continue journey of exceeding excellence on course of achievingour purpose as we continue transform our dreams into reality.
Before I move further it is mention flow mismatches during FY 2016-17 which resultedin temporary delays in meeting a few interest obligations. The situation may have beendifferent if we did not have to pay a retrospective additional levy of ~Rs 3300 crorewhich added to our debt level and related interest costs. We have been in continuousengagement with our long-term banking partners for suitable in the solutions andappreciate the trust and faith reposed by them in JSPL during these challenging times.Since inception had an impeccable track record for meeting all its financial commitments;and remains committed to honour all its current and future obligations. We at JSPL arethat by the time the current year comes to an end the Company would be back to the daysof prosperity with a steady increase in our EBIDTA levels and continue to set new recordsby outdoing its own performance quarter after quarter and year after year.
During the challenging times JSPL was often referred to as a debt-heavy company witha net debt of around Rs 46000 crore. In isolation the debt levels may appearsignificantly high. However when seen in the right perspective with a diversified andprudently spread out asset base of close to Rs 75000 crore the same debt level wouldappear rational and reasonable. The entire debt is prudently spread across high potentialbusiness segments - with around Rs 25000 crore in domestic steelmaking business with acapacity of 6 MTPA; Rs 8600 crore in world-class power generation assets of 3400 MW; andthe balance Rs 12400 crore in a 2 MTPA integrated steel plant in Oman along with 6.2MTPA coal-mining operations in Australia Mozambique and South Africa.
You would have observed that over the past five years your Company has transformed itsassets from 3 MTPA steelmaking and 1000 MW power generation capacities a 8.1 MTPAsteelmaker and a 5049 MW power producer. As a conscious element of its expansionstrategy JSPL consolidated its power generation assets at the O.P. Jindal Super ThermalPower Complex at Tamnar scaling it to 3400 MW. On the steelmaking front JSPL spread itsoperations from Raigarh (Chhattisgarh) by successfully establishing greenfield integratedsteel complex at Angul (Odisha) and Sohar (Oman) both being among the largest and mostmodern in their respective regions. Incidentally adding to our challengesbythetimeouroperational the global steel commodity cycle and the domestic power sector experienceddynamic changes not only for JSPL but also for every player in these sectors.
Despite facing significant challenges JSPL successfully completedthe6MTPAgreenfield-18 expansion project at Angul (Odisha) in early FY 2017-18 without taking any additionaldebt in FY 2016-17. The completion commissioning of 4 MTPA Blast Furnace - the largest inIndia is a significant development for the future growth trajectory of JSPL. I am happy toshare with you that JSPL has set new benchmarks in completing the Blast Furnaceinstallation in a record time of 27 months at lowest costs compared to the installationtime of 45 months taken for Blast Furnace installations of similar size and scale. therecent commissioning of the 4 MTPA Blast Furnace at Angul JSPL will enhance its domesticsteelmaking capacities to 9.6 during FY 2017-18. The Angul operational - performance asit keeps picking momentum will be the fulcrum to effectuate JSPL's reduction roadmap tobecome relatively debt free in the next three-four years.
Every challenge offers an opportunity the path we have continued the past two years.The path that made us introspect each and every process minutely - across the length andbreadth of JSPL. I am glad to share that the series of measures have not only optimisedcost structures but has enabled us to look at innovative ways of enhancing the overallefficiencies and revenue pipeline in India and global geographies JSPL operates in.
During FY 2016-17 JSPL's Raigarh steel plant continued to operate at optimumproduction levels. The commissioning of India's first Head Hardened Rail Facility atRaigarh to manufacture Rail Tracks for metros and high-speed trains was a major landmarktaking JSPL to the select league of seven global steelmakers with this capability. TheRail and Universal Beam Mill (RUBM) at
Raigarh successfully completed a major export order of over 120000 tonnes of Rails toIran to make a mark in the global markets.
Robust demand for Jindal Panther TMT Rebars anchored the acceleration in operationalperformance at JSPL's Patratu facility. The Pellet Plant at Barbil posted its highest eversales and exports during FY 2016-17 enabling JSPL to emerge as the country's largestpellet exporter. The integrated steelmaking operation at Oman commissioned a 1.4 MTPA BarMill and recorded its highest production effectuating a 50% rise in EBIDTA of JindalShadeed. Mining operations spread across South Africa Mozambique and Australia increasedtheir contribution to the Company's growth trajectory.
With the indicators of the upward cycle startingto appear we at JSPL are confident ofour abilities back to the days of glory as we take measured steps to enhance our capacityutilisations; steps that would translate into a giant leap forward for the future of JSPL.
The Government of India has recently announced the National Steel Policy (NSP) 2017with an aim to ramp up domestic crude steel capacity to 300 MTPA by 2030 from the current125 MTPA levels. This effectively indicates a significant growth in per capita consumptionof steel from the current 60 Kg to 160 Kg levels by 2030. The realisation of the targetsset forth in NSP 2017 offers significant to domestic steelmakers.JSPLisconfident ofaccelerating its production and sales curve by Making in India Making for the World -through the course of this journey.
On behalf of my 50000 colleagues I take walkingon for the privilege of appreciatingthe continued support from all our stakeholder segments during the challenging times. ofexistence of JSPL integrally includes value creation Your confidence in JSPL will continuebe a prime mover for us motivating us to work harder and smarter this year. We all lookforward to come back next year with a performance that would qualify as superlative by allstakeholders including shareholders of JSPL.