Jindal Steel and Power Ltd (JSPL) aims to clear all its debt by 2021-22 before embarking on an expansion plan, its Chairman Naveen Jindal said Tuesday. "First we will clear all our debts, then we will begin working on our expansion plan. We aim to clear it by 2021-22. There is a debt of Rs 39,000 crore on the group, and on steel Rs 18,000-19,000 crore," Jindal said at an event here.
In October last year, Jindal announced the company's plans to increase the capacity of its Angul.plant to 20 million tonnes per annum by 2030, set up an industrial park in Odisha and lay a 200-km slurry pipeline from Barbil to Angul for transportation of iron ore. On the status of 1 lakh tonne rail order by Indian Railways, Jindal Tuesday said the company has already completed over 50 per cent of the order and the rest will be completed by March 10.
Part of the USD 18 billion OP Jindal Group, JSPL has the presence in steel, power, mining and infrastructure sectors. The domestic steel sector is facing many challenges including cheap imports.
Against this backdrop, JSPL's Joint MD N A Ansari said the local steel industry continues to face challenges of steel imports especially from countries with which India has Free Trade Agreements. About the interim budget, he said, "we had expected duty cut on coking coal".
Domestic demand for coking coal, a key raw material for making steel, is met through imports. On the government's proposal to extend tax sops given to real estate firms for developing affordable housing until next fiscal, he said the move would push demand for long steel products.
(With inputs from agencies.)