"Odisha Government should take up the issue with Union Government to open and run the closed iron ore mines through ordinance or other means, so that iron ore production increase and its price comes down," Jindal said, adding that it would ease the iron ore supply situation as well as help the State to realise the balance penalty from the non-operating leaseholders.
Seeking reduction of iron ore price, the JSPL chairman maintained that around 1 lakh direct employment and 2.5 lakh indirect employments has been hit due to closure of mines.
He further pointed out "The steel industry in Odisha is importing coal and limestone. If iron ore is to be imported then steel industry in Odisha will not survive. Odisha industries are not being able to compete in the international market."
He claimed that except three steel companies, all other steel companies has become insolvent and gone to NCLT.
If iron ore price is not brought down, it will impact these companies too, Jindal said.
JSPL has invested more than Rs 33,000 crore at Angul in Odisha. "If we won t get iron ore at affordable price, how will the company become competitive and give the thousands of jobs, he asked.
If iron ore mines become operational, lakhs of people will get employment and the state government will also get royalty and fund in DMF, Jindal said.
He also demanded for increasing availability of railway rakes for transfer of raw material for industries and removal of day time embargo. He also requested the State to implement freight rates as notified.
Similarly he also demanded to increase coal production by MCL to make coal available for power generation.
Besides, he also approached the State government to roll back in the hike in electricity duty rate which has been hiked from Rs0.30 to Rs0.55 on self consumption of power from CPP.
Jindal also met Odisha Steel and Mines minister Prafulla Kumar Mallik.
On the Union Budget, 2018-19, Jindal said, "Reduction of corporate tax for companies having turn over less than Rs 250 crore is a good step. Spending on infrastructure like road, railway and highways is also a welcome step. This will increase steel demand".
The deceased were identified as Pabitra Mohan Das and Satyanarayan Mishra. The injured were admitted to Dhenkanal district headquarters hospital. Three of them were shifted to SCB medical College and Hospital in Cuttack after their condition deteriorated.
All are employees of JSPL, Angul.
The incident took place while they were returning from Kendrapara after attending a marriage party last night.
The incident took place at around 10 am when the plant was operational. However, no casualties were reported in the incident.
While the exact cause of the blaze is yet to be ascertained, preliminary investigations reveal the fire could have taken place due to a short circuit in the factory.
Two fire tender teams of the JSPL steel plant were pressed into service to douse the flames.
The concerned authorities are monitoring the situation. The amount of property loss is yet to be estimated, sources said.
Inaugurating the state of the art six mtpa steel plant of JSPL, Odisha Chief Minister Naveen Patnaik said it would provide direct employment to around 30,000 people and indirect jobs to many others.
JSPL Chairman Naveen Jindal said the plant was set up at an investment of about Rs 33,000 crore and it would enable the company to overcome its loss in the aftermath of the coal block cancellation.
He said Jindal Steel & Power Limited would start earning and play significant role in the development of the state.
The plant with its 4,554 cubic meter blast furnace will make Odisha the fourth largest steel maker in the country.
With this, JSPL also becomes the first company to complete this mega steel project as per its commitment in the memorandum of understanding with the government of Odisha.
The company had installed two mtpa steel making capacity at its Angul steel complex in 2015 with Coal Gasification - DRI route, which is being used for the first time in the world. Later it further added four mtpa steel making capacity.
The Angul steel complex has also four mtpa sinter plant, two mtpa coke oven, three mtpa steel melting shop, 1.2 mtpa plate mill, 1.4 mtpa bar mill and a 810 mw captive power plant.
In 2005, JSPL signed an MoU with the Odisha government to build the mega steel plant. JSPL's overall capacity of steel production has been enhanced to 10.75 mtpa, company sources said.
He said the sinter plant has already been commissioned and the blast furnace is likely to be commissioned by next week.
In the first phase, the Angul steel plant would be expanded from the present capacity of 2 MTPA to 6 MTPA.
With the commissioning of the blast furnace, JSPL will become India's fourth largest steelmaker after JSW, SAIL and Tata Steel.
The blast furnace at Angul is part of the company's proposed 12.5 MTPA steel plant and 2,600 MW of power projects in phases, said company sources.
Jindal, who met Chief Secretary A.P. Padhi and other officials at the state secretariat here, also sought the withdrawal of the hike in electricity duty on Captive Power Plants (CPPs).
"I appeal the state government to withdraw the decision as hiking electricity duty from 30 paise to 55 paise would affect the business of the investors," he said.
The state government on Thursday hiked electricity duty by 25 paise per unit for the CPPs, which generate electricity for their own consumption, in a move that it expects to generate additional revenue worth Rs 875 crore annually.
Niranjan Padhi, an official of a rival stevedores company of JM Buxi and Co, is untraceable since last 12 years. A missing report had been lodged then by the company. Police had failed to elicit any sort of clue on the whereabouts after a prolonged search operation.
“On April 1, we had issued notices to both the officials of OSL to appear before the police in Paradip police station on April 4 for inquiry. We interrogated them for around four hours. In 2005, Niranjan Padhi, working at Gopalpur and Paradip, went missing after receiving threats from the OSL. It was only during the grilling of Qadir Khan alias Ashok Bihari (38) from Howrah of West Bengal in Mahendra Swain murder case, that the involvement of OSL officials in the missing of Padhi was revealed. Qadir was arrested on March 19. Swain, General Manager of Hyderabad based Seaways Shipping and Logistics Limited (SSLL) at Paradip, was gunned down by four criminals on October 26 last year. We also interrogated them on Mahendra Swain murder case. We will soon interrogate others in this case,'' said IIC of Paradip police station, Subharshnu Sekhar Nayak.
It is pertinent to note that the police had cracked the murder case of Mahendra Swain after arresting 11 persons including Mahimananda Mishra, Managing Director of OSL.
“We have submitted a 500-page charge-sheet at the JMFC Kujang against all the accused under section 302 (murder), 120- b (criminal conspiracy), section 20, 25 and 27 of Arms Act and section 3 and 8 of Indian Explosive Substances Act in Mahendra Swain murder case. We have stated there that the old stevedoring business rivalry was the motive behind Swain’s murder and OSL's involvement in it,” the IIC added.
During his college days, Mishra had shown his leadership quality as he was the president of Stewart Science College and later went on to become the president of Madhusudan Law College.
After completing his degree in Law, he began his profession as a contractor in Paradip. In course of time, he started supplying labourers to Paradip Port Trust (PPT) for cargo handling. Later, along with some of his friends, he began stevedoring business and subsequently set up OSL. Within a few days, Mishra and his company had their monopoly in stevedoring in Paradip and made hefty profits.
After consolidating his business in stevedoring, Mishra gradually began to expand his business into hotel industry, education, hospitality, automobile, mining, construction and chartered aviation.
However, events took a new turn in 2015 after OSL faced stiff competition from Seaways Shipping & Logistics Ltd after the latter got the contract from JSPL. This triggered bitter rivalry between the two companies which subsequently resulted in the brutal broad daylight murder of Seaways General Manager Mahendra Swain on October 26 this year.
In course of investigation, police came to know about the involvement of OSL and Mishra in the murder and finally nabbed him and his associate Basant Bal from Bangkok after being informed by the Thailand Immigration Police.
Acting on the complaint by Rajkishore Swain, elder brother of Mahendra, against some of the officials of the Odisha Stevedores Ltd (OSL) including the company owner Mahima Mishra, executive director (ED) Basant Bal, manager (operation) Subash Acharya and senior manager Debi Prasad Tripathy for their involvement in the murder, police had begun investigation into the incident.
Police had raided Add Annex Nursing Home in the name of Basant Bal near College Square in Cuttack late on Friday night. Prior to this, raids were conducted on the house of the aforesaid OSL officials in Salepur, Mahanga and Basapur near Kendrapara town.
Talking to media persons today, Additional Superintendent of Police (ASP), Paradip, Gadadhar Pradhani said police has been conducting raids at different places in Odisha since last fortnight.
“Five special teams have been conducting raids at the suspected hideouts of the accused against whom a complaint has been lodged by the brother of the deceased. At present, two teams have gone outside Odisha to trace out the assailants. “We are trying all possible means to nab the assailants and the mastermind in the murder of Swain. We hope that we will succeed in our investigation,” the ASP added.
He also said police is the process of collecting detailed information about the whereabouts of OSL executive director, the role of manager (operation) and the works assigned to the senior manager.
“We have collected information about the absence of these three senior officials since the day of the incident,” he added.
On November 10, police had frozen the OSL bank accounts in Bank of India as well as the personal accounts of Bal, Tripathy and Acharya.
Notably, Swain was shot dead by two unidentified miscreants near Ambedkar Bhavan at around 9.30 am on October 26 when he was on his way to his office in his Scorpio vehicle.
Two bike-borne unidentified miscreants first hurled bombs at Swain’s vehicle. When Swain tried to flee, the assailants opened fire targeting at his head killing him on the spot.
Swain’s family members alleged that it was a pre-planned attack on him. SSPL had become an eyesore to OSL after it had bagged a contract from Jindal Steel and Powers Limited (JSPL).
Informing this to media, Steel and mines minister Prafulla Mallick said, "We have filed a Special Leave Petition (SLP) in the Supreme Court against the HC order on Sarada Mines."
In July, the HC had directed the Odisha government to allow JSPL to lift iron ore within four weeks.
The HC had asked the Odisha government to allow JSPL to transport its legally purchased iron ore fines and lumps lying within the leasehold area of Sarada Mines to the company's palletisation plant at Barbil and railway siding.
Sources said JSPL had bought this material between 2004 and 2014 and had paid Rs 1,869 crore to the State government towards royalty and taxes for the same.
In its April 8 order, the court had also quashed the letter of the deputy director of mines, Joda issued on March 31, 2014, directing stoppage of ore transportation.
Seven companies, which have participated in the e-auction process, are Bhusan Power, Bhusan Steel, Essar, JSWL, JSPL, RINL and Tata Steel.
The Odisha government on Thursday opened the bid process, which was started on December 23 last year for the iron ore mines.
The Ghorhaburhani-Sagasahi block, located in Koida mining sector in Sundargarh district, has been reserved for specified end use for an integrated steel plant.
Steel and Mines Minister Prafulla Mallick said the process for technical evaluation has started and names of technically qualified bidders would be announced on February 25.
He said the floor price would be decided after the technical evaluation is over.
While financial bids were invited in digital format only, technical bids were invited both in digital and physical format from eligible bidders.
Sources said that the state government would issue a letter of intent to the successful bidders by March 28.
The iron ore block will be offered in the form of a composite licence- prospecting licence (PL)-cum-mining licence (ML).
The auction platform is provided by MSTC Ltd while SBI Capital Markets Ltd (SBI Caps), a fully owned subsidiary of State Bank of India, is the transaction adviser for conducting mineral e-auction. The transaction adviser will assist the state government in fixing floor price for the auction.
The state government has already formed a committee under the development commissioner for the smooth conduct of mines auction in the state.
Bhubaneswar: Jindal Steel and Power Ltd (JSPL) would start producing gas from coal at its Angul plant from May 15, said the company's chairman Naveen Jindal on Wednesday.
"We hope the coal-to-gas project at Angul will be commissioned from May 15. This kind of project is first of its kind in the world," Jindal told mediapersons after meeting Chief Secretary and Mines Secretary at State Secretariat here.
Sources said the plant would produce 225,000 Nm3/hr synthetic gas.
The company has made an investment of Rs 21,000 crore to set up a 1.5 million tonnes per annum (mtpa) steel mill and an 810-MW power plant in the first phase.
It has signed an agreement with Lurgi Technology Company, South Africa, for providing the technology for coal gasification.
The technology to be used in this plant offers practical means of utilising indigenous coal for meeting stringent environmental control requirements.
Bhubaneswar: A three-member team of the Supreme Court-appointed Central Empowered Committee (CEC) on Wednesday visited the site of Thakurani mines area at Barbil of Keonjhar district as part of its probe into the nexus between Sarada mines and Jindal Steel and Power Ltd (JSPL).
Sarda Mines Ltd, the lease holder of the Thakurani mines is under the scanner of the Apex court for glaring violation of Rule-37 of Mineral Concession Rules-1960. The mines owner was selling its entire run of mine (ROM) produce to Jindal Steel & Power Ltd (JSPL) without any written agreement at prices far below the market rate.
In its order dated September 16, 2013, the apex court referred the case to the CEC while hearing a petition filed by senior journalist Rabi Das.
During its visit to the state, the Justice M B Shah Commission of Inquiry had also found many irregularities in the operations of Thakurani mines spread over 947 hectares of the Thakurani reserved forest.
With the completion of the new steel-making facility, JSPL will utilise the full capacity of its 4-MTPA mega blast furnace, commissioned in August this year.
"With the successful completion of the BOF today, the Angul Steel Complex will achieve optimal efficiencies in terms of cost and operation," said Naveen Jindal, chairman, JSPL.
The BOF will produce 3 million ton of high-grade steel per annum.
JSPL said it has deployed the innovative Dry Gas Cleaning System, which is superior in terms of environment-friendliness as compared to the Wet Gas Cleaning Plant.
"Adoption of Dry Gas Cleaning System reiterates JSPL's commitment to green technology," D K Saraogi, JSPL's executive director and Angul Plant head, said.
The company has tied up with SMS Group for engineering and supply of key BOF equipment, said a JSPL official.
The BOF is the last major installation at the 6-MTPA, Rs 33,000-crore integrated steel plant.
Bhubaneswar: Industries in Odisha today decried the steep hike of 83 per cent in electricity duty for Captive Power Plants (CPPs) saying it will hamper investment and urged the state government for a roll back.
Prominent industries including NALCO, JSPL, Vedanta, HINDALCO, PPL, MCL, JSL, IMFA, Nava Bharat, Tata Steel, Tata Iron and Sponge, FACOR and MAITHAN as well as representatives of associations like CII, UCCI, Captive Power Plant Federation, FICCI and Aluminium Association of India had a consultative meeting on the recent hike in electricity duty for CPPs.
Confederation of power producers, AAI and others made a presentation on damaging implications of the hike on industries in Odisha as well as the investment climate in the state, said chairman of CII, Odisha and CMD of NALCO Tapan Kumar Chand, who chaired the meeting.
The hike of electricity duty from Rs 0.30/kwh to Rs 0.55/kwh will increase the cost of production in the state by Rs 4,000 per tonne in case of aluminium and to Rs 400 per tonne in case of steel, Chand said in a statement.
It will make industries in Odisha un-competitive, severely eroding the competitiveness of products produced in Odisha as compared to that of other neighbouring states and overseas, it said adding, such hike at a time when domestic and international markets are going through a sluggish cycle, has been decried by industry representatives.
They have termed the hike as inappropriate and uncalled for and requested industry bodies to take up with the state government to roll back the steep hike, it said.
Noting that the Captive Power Plant Federation has already moved court and has obtained an interim order to keep the differential increased amount in a separate account till disposal of the case, industry bodies felt that the government should rethink and revisit the issue.
Pleading for a roll back, the industries pointed out that all neighbouring states with whom the products of Odisha compete in domestic market, have electricity duty within the range of 0 per cent in Andhra Pradesh and Telangana to 32 per cent in Chhattisgarh.
Moreover, GST rollouts are scheduled on July 1, and GST being a destination based tax with consumption as the criteria for receipt of revenue, Odisha needs to develop as a consumption hub and a market hub to avail benefits under GST and this can be possible only with industry making end use products in Odisha in a given cost competitive climate, the statement said.
The MSME sector, which is in the priority list of the government, will also be hit hard by the duty hike, it said.
Domestic and international markets being in a down turn cycle, this is not the appropriate time for such steep hike, the statement said adding, this will be a wrong signal to prospective investors as existing investors will have a different story to tell.
In the current market scenario, many CPPs are not running in full capacity, roughly 30 to 40 per cent are struggling to survive, it said.
The increase in the cost of power input will have a negative impact on export, employment generation and revenue earning, leading to migration of downstream industries to neighbouring states, it added.
The system was inaugurated by General Manager, South Eastern Railway, S N Agrawal today in presence of DRM (Chakradharpur), Rajendra Prasad and President and Unit Head, JSPL Barbil, T S Shanbhogue.
The Rapid Loading System would improve material handling capacity of JSPL by accelerating rake loading speed.
"The Rapid Loading System of 48,000 MT per day will enhance JSPL's efficiency of handling raw material and product dispatch. The increased efficiency will also help in saving cost and time, thus boosting overall competence of JSPL," said T S Shanbhogue, President and Unit Head, JSPL Barbil.
Also Read: JSPL plant’s ancillary industries can create 50K jobs: Jindal
JSPL had established the biggest pellet making complex at Barbil. It consists two units of 4.5 MTPA capacity each, a company release said.
"JSPL has invested about Rs 35,000 crore in Odisha and has created employment for about 30,000 people. At Angul, it has already set up a 2 MTPA steel plant and more investments are in process to complete the 6 MTPA plant," Jindal said at Make in Odisha Conclave that concluded here today.
"We are already making in Odisha. The Coal Gasification Technology adopted by JSPL can be used in making several products which will help in creating more downstream industries. More than 50,000 jobs can be created by developing Ancillary Industries of JSPL's plant at Angul," he said.
JSPL is now focusing on its construction division and has commissioned world's largest Rebar Mill at Angul, Jindal said, adding "We wish whoever builds a house in Odisha, choses to use Jindal Panther TMT Rebar".
The construction division has solutions which can reduce the time of building by almost half and make stronger buildings & roads. JSPL in Barbil has set up the largest pelletisation complex of 9 MPTA, Jindal said.
JSPL's stall in the Make in Odisha Conclave has attracted thousands of visitors who are in policy making, legislations, administration, academia, research and business, a company statement said.
Appreciating the state government's initiative for making Odisha an investment-friendly destination, Jindal said "We have fulfilled the dreams of Biju Patnaik and O P Jindal by setting up the mega steel plant at Angul and are continuing to invest in it."
The apex court also issued notice and sought response of the Jindal Steel and Power Ltd (JSPL) and its promoter Naveen Jindal on an appeal by the government challenging the High Court's February 11 verdict, directing the technical committee to review its own decision to change the end-use of two coal blocks – Utkal B1 and B2 – in Odisha.
JSPL had contended in the High Court that change of end-use of these blocks from steel and iron to power has prevented them from bidding for them.
The two blocks in Odisha and Gare Palma IV/6 block in Chhattisgarh were earlier allotted to JSPL but were cancelled along with 214 blocks by the apex court and later, when re-auction was announced, their end-use was changed from steel and cement to power.
"Maintain status quo as of today," a Bench comprising Justices M.B. Lokur, Kurian Joseph and A.K. Sikri said while posting the matter for hearing in second week of September.
Attorney-general Mukul Rohatgi had sought stay of the High Court judgement which was opposed by JSPL's counsel and senior advocate Kapil Sibal, who said that the company has already invested Rs 20,000 crore for developing the steel plant using a new technology.
"Why can't I bid? Only because there is a change in end-use cannot be a ground," he submitted after Rohatgi assailed the High Court verdict which gave a go-bye to the decision of the Inter-Ministerial Expert Technical Committee, which was constituted specifically to formulate criteria for classifying the coal mines for the purpose of auction.
The attorney-general said that on August 25, 2014, the apex court had held as illegal and arbitrary all allocation and by subsequent order on September 24, 2014, quashed them by ordering re-auction.
The committee made classification of mines and changed the end-use of the two coal blocks on the ground that the quality of the coal from there were of inferior and average quality suited for power as better quality coal is required for cement and steel.
"JSPL denied that any false statement has been made by it before the court. It was clarified by the JSPL counsel that the company never said that additional levy has been paid on non-operational blocks," said a JSPL spokesperson.
"Neither the company claimed that any equity has been created in its favour by payment of additional levy," he added.
On January 16, the government alleged before the High Court that JSPL and its promoter have made "lot of statements which were false" while challenging its decision to change the end-use of two coal blocks.
Additional Solicitor General Sanjay Jain, representing the government, had also termed as "false" JSPL's claim that it had paid an additional levy of Rs 295 per metric tonne of coal mined, from two blocks - Utkal B and Gare Palma IV/6 - since the day these were allocated to them, for being eligible for the fresh auction of coal blocks.
Additional Solicitor General (ASG) Sanjay Jain submitted before a bench of justices B D Ahmed and Sanjeev Sachdeva that Jindal Steel and Power Ltd's (JSPL) and its promoter had made a "lot of statements which were false".
He also termed as "false" JSPL's claim that it had paid an additional levy of Rs 295 per metric tonne of coal mined, from two blocks - Utkal B and Gare Palma IV/6 - since the day these were allocated to them, for being eligible for the fresh auction of coal blocks.
During brief arguments, Jain said the amount of additional levy was to be paid only by those companies who were allocated Schedule Two mines - those that were operational - and not by those who had Schedule Three mines, which were non-operational but had all the requisite clearances.
The ASG also said that by claiming to pay the additional levy amount, "no special equity is flowing" in favour of JSPL with respect to the two coal blocks.
The bench will now hear ASG's arguments further on January 20.
The court was hearing pleas filed by JSPL and Jindal against the government's decision to change from steel and iron to power the end-use of two coal blocks - Gare Palma IV/6 in Chhattisgarh and Utkal-B in Odisha, both of which had been earlier alloted to the company.
The Coal Ministry through its December 18, 2014, order had changed the end-use of various coal blocks.
Yesterday, the court had asked how the coal ordinance gave the government the power to change the end-use of coal blocks and questioned the "tearing hurry" to hold their auction. It had also sought to know whether the auction process could be kept on hold till it examines the petitions of JSPL and Jindal.
The bench had also questioned the Coal Ministry on why captive power use has been excluded by the December 18, 2014, order when the same has been included in the ordinance as an end-use along with power generation. (More) PTI HMP PPS
JSPL had earlier told the court that due to change of end-use it was unable to participate in the ongoing auction process for the Utkal B block as it has already set up a steel plant near that mine when it was earlier allocated to it.
The company had also said it was currently suffering a loss of Rs 250 crore per month and if it did not get the block then over 30,000 of its workers will become jobless.
It had also said that it would have to import coal at a cost of Rs 2500 per metric tonne when it could have got the same for Rs 500.
The petitioners have sought setting aside of the December 18 order of the ministry as well as the provisions of the Coal Ordinance "which provide for change of end-use from steel to power".
JSPL in its plea has contended that it was allocated coal blocks in Odisha and Chhattisgarh for the purpose of setting up steel and sponge iron production units, respectively.
After the allocations were cancelled by the Supreme Court through its orders of August 25 and September 24 last year, the Coal Mines (Special Provisions) Ordinance, 2014, was promulgated mandating the government to auction or tender the coal blocks, it has said.
According to the plea, change of end-use has resulted in making JSPL ineligible for participating in the ongoing auction process which is expected to culminate on February 14.
It said that JSPL has set up steel and sponge iron units in Odisha and Chhattisgarh for over Rs 24,000 crore.
The entire investment would be "rendered fruitless" if JSPL was unable to bid for the blocks, which were earlier allocated to them and based on which the steel units were set up after obtaining all necessary environment and forest clearance.
It also sought to know whether the auction process could be kept on hold till it examines the issues raised by JSPL and its promoter Naveen Jindal.
"Does Coal Ordinance give power to change end-use of block? It (Ordinance) does not appear to give them power to change the end-use," a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva observed and questioned, "Why can't we hold back auction till we examine it? What is the tearing hurry?"
The bench has also questioned the Coal Ministry on why captive power use has been excluded when the same has been included in the ordinance.
The bench made the observations and asked questions while hearing the pleas of Jindal Steel and Power Ltd (JSPL) and Naveen Jindal who have opposed the government's decision to change end use of two coal blocks in Chhattisgarh and Odisha which had been earlier allotted to them.
The bench listed the matter for further hearing tomorrow when Additional Solicitor General (ASG) Sanjay Jain would inform the court about the government's stand and the reason why they changed the end-use of the coal blocks.
The Coal Ministry through its December 18, 2014, order had changed the end-use of various coal blocks, including Utkal B in Odisha and Gare Palma IV/6 in Chhattisgarh, which had been earlier allocated to JSPL for steel and sponge iron production, respectively.
The government by its order had changed end-use of these two blocks from steel and iron to power, excluding captive power use as well.
During the proceedings, senior advocates Kapil Sibal, A.M. Singhvi and Jayant Bhushan, who appeared for JSPL, said the ordinance does not provide for change of end-use and if it does, then to that extent it is unconstitutional.
"We are challenging the exercise of power and not the ordinance," Sibal said and added that JSPL is unable to participate in the ongoing auction process due to change of end-use.
He said the company is currently suffering a loss of Rs 250 crore per month and if it does not get the block then over 30,000 of its workers will become jobless.
Sibal also said the company would have to import coal at a cost of Rs 2500 per metric tonne when it could have got the same for Rs 500.
Sibal claimed that if it could participate in the auction, JSPL would win it as it has already set up a steel unit.
On January 12, the High Court had sought the government's response on the plea of former Congress MP Naveen Jindal's company JSPL challenging a Coal Ministry order and the ordinance provisions "which allow change of end-use" of coal blocks in Chattisgarh and Odisha to power from steel.
The petitioners have sought setting aside of the December 18 order of the ministry as well as the provisions of the Coal Ordinance "which provide for change of end-use from steel to power".
JSPL in its plea has contended that it was allocated coal blocks in Odisha and Chhattisgarh for the purpose of setting up steel and sponge iron production units, respectively.
After the allocations were cancelled by the Supreme Court through its orders of August 25 and September 24 last year, the Coal Mines (Special Provisions) Ordinance, 2014, was promulgated mandating the government to auction or tender the coal blocks, it has said.
According to the plea, change of end-use has also resulted in making JSPL ineligible for participating in the ongoing auction process which is expected to culminate on February 14.
It said that JSPL has set up steel and sponge iron units in Odisha and Chhattisgarh for over Rs 24,000 crore.
The entire investment would be "rendered fruitless" if JSPL was unable to bid for the blocks, which were earlier allocated to them and based on which the steel units were set up after obtaining all necessary environment and forest clearance.
Jindal met Odisha Chief Secretary, Aditya Prasad Padhi at the State Secretariat in Bhubaneswar in this regard. Jindal apprised Padhi about the challenges faced by the company due to shortage of coal and increase in prices of iron ore in the past three years.
“There are a lot of challenges in availability of coal. India has the fifth largest reserves of non-coking coal in the world. Despite this, there is shortage of coal and Mahanadi Coalfields Ltd (MCL) needs to increase its production. Since India does not have any captive coal blocks and is dependent on Coal India and its subsidiaries, they must ensure coal is available in abundance,” said Jindal after the meeting.
Similarly, iron ore is also available in abundance in the country but its prices have more than doubled. The state government must resume mining, added Jindal.
Sources said JSPL will invest an additional sum of Rs 50,000 crore in Angul so that it can achieve the target of producing 20 million tonne steel by 2030.
“From 2021 we want to embark on a new journey where we want to take the capacity of Angul plant from 6 million tonnes to 20 million tonnes by 2030 and that will coincide with the India Government’s steel policy of producing 300 million tonnes of steel by 2030,” said Jinal.
We have already planned to achieve the targeted 20 million tonnes of production in the next 12 years, Jindal added.
Earlier on July 27, the JSPL chairman had met Padhi seeking urgent intervention of Odisha government over operational problems faced by his two plants due to shortage of coal and higher iron-ore prices.
"Minister of Haryana Government and Chairperson Emeritus of OP Jindal Group Savitri Jindal today visited Jindal Steel and Power Ltd's (JSPL) Angul Unit and inaugurated the 810 MW captive power plant of the 6 MTPA steel project," the company said in a statement.
It added that she also inaugurated a private airstrip at the Angul plant. Her son and company chairman Naveen Jindal was also present on the occasion.
"I am very happy that JSPL has adopted very environment friendly new technology for its steel plant. The Coal Gasification-DRI route will be the first of its kind in the world," she was quoted in the statement.
JSPL chairman Naveen Jindal said on the occasion that the coal gasifiers of the coal gasification plant (CGP) at the Angul unit are working well and soon the company will start producing sponge iron, using synthesis gas from the CGP.
Savitri Jindal is the Chairperson Emeritus of OP Jindal Group and a Cabinet Minister in the Haryana government.
The Shah Commission report tabled in Parliament yesterday said that steel and mining giants like Tata Steel, SAIL, JSPL and Aditya Birla Group were found to have unlawfully mined minerals worth Rs 60,000 crore from 2008-11.
The company has submitted all the information desired by the Shah Commission but the "Commission never issued any notice u/s 8 (b) of The Commissions of Enquiry Act so that we could have known as to what is the alleged violation on our part; and could have appropriately replied to the same," a spokesperson for the company told PTI.
"However, based on Justice Shah Commission report we have received a show cause notice from MOEF (Ministry of Environment and Forests), GOI on 23.1.2014 and we are replying to the same and according to us there is no violation whatsoever on the part of our Company," the spokesperson said.
JSPL's Jindal Strips has been named in the list of companies alongwith Tata Steel, SAIL, Aditya Birla Group among others in the report showing year-wise iron and manganese ore produced illegally or without lawful authority and without having environment clearance (EC). This includes production beyond the cap fixed in the EC.
The indicted companies have said that they were yet to get access to the Commission's report.
A Tata Steel spokesperson has said: "We are still to go through the report."
An Aditya Birla Group's spokesperson also said: "We have had no access to Shah Commission report and so, as of now, we have no comments to offer." Essel Mining of Aditya Birla Group was named in the report.
State-run SAIL, on the other hand, said it would offer comments after going through the report, but asserted that it had followed all necessary norms and guidelines.
The Centre-appointed Commission's report has said most of the mining activity in the state between 2008-2011 was carried out with political patronage defying laid-down rules and suggested Odisha to recover the amount which could be used for developing the affected Keonjhar and Sundargar districts and helping tribals who were impacted by mining.
"Value of the unlawful extraction of iron and manganese ore comes to Rs 59,200 crore.... Let the state government recover the said amount, by finalising the proceedings on the basis of the notices as early as possible," the report has said.
The students, visiting India as part of the Asia Leadership Trek, examined how the company uses green technology in the plant to produce steel.
The objective of their visit was to make a case study on a multitude of local innovations and challenges faced by JSPL to be able to adapt technology and management of coal gasification from South Africa to India, thus being the first to create the energy efficient and more environment friendly technology of coal production for direct reduced iron.
A total of 43 students from Harvard University's Business School, the Kennedy School, Graduate School of Arts and Sciences and Graduate School of Education and Massachusetts Institute of Technology visited the plant.
JSPL is the only plant that the students visited during their three-day trip in India.
"Coal gasification technology has immense potential for countries like India, where non-coking coal is abundantly available. We, at Angul, have used this technology for the first time in the world in a steel plant. It is an honour for us that Harvard University has included this environment friendly steel-making process in the trek," said JSPL chairman Naveen Jindal, who accompanied the students.
Claude Al Tabar, a student, said: "I think the use of clean energy would help in sustainable development in India. The initiative by JSPL to produce steel using coal gasification technology is a part of the green energy."
The Asia Leadership Trek aims to provide first-hand insight through an experiential journey of a country or region, in which participants investigate political, economic, industrial and social issues.
JSPL's Chairman Naveen Jindal handed over a cheque of Rs three crore to Chief Minister Naveen Patnaik at the state secretariat here on Saturday, a company statement said.
"JSPL, as a responsible corporate of the country has always stood with the people affected by natural calamities.
In this difficult time, we stand in solidarity with the people and Government of Odisha for the rebuilding the cyclone affected areas," said Jindal after handing over the cheque.
He appreciated Odisha Chief Minister's effort in saving lives during the cyclone and relief and restoration work aftermath.
JSPL, through its CSR arm JSPL Foundation, had also provided one lakh cooked meals to the victims of cyclone Fani from May 10 to 19 at Puri, in coordination with the district administration, it said.
The TRB Iron Ore Mines of JSPL at Tensa had provided 50,000 litres of drinking water and its Angul unit had also supplied cement and construction material for repair of public buildings, it added.
In a meeting with top state government officials including Chief Secretary Asit Tripathy and Secretaries of Steel and Mines, Industry and Water Resources, Jindal emphasised the need to give preference in iron ore auction to companies which have already invested in Odisha.
"Companies which have invested thousands of crores in steel plants and have created employment in thousands should be given preference in auction of iron ore. We have requested for giving iron ore mines first for captive consumption and then for merchant mining,"Jindal said after the meeting.
JSPL has invested Rs 47,000 crore in Odisha to set up the largest steel plant in the state.
The comapny has a very small mine, which is near depletion and does not have captive iron ore and coal mines for the plant, he said.
"Our investment in Odisha needs raw material security to become viable," Jindal said.
He said JSPL buys about one million tonne iron ore every month in Odisha and becomes the largest buyer of the raw material in the state.
JSPL Chairman also demanded a reduction in iron ore price as global steel prices had fallen.
"Steel price has been reduced by about 30 per cent.
But iron ore price has not been decreased 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 said.
For the first time in the world, JSPL has set up a coal gasification plant along with a 2 MTPA direct reduced iron (DRI) facility, based on the coal block allocated to it in Angul.
However, the Supreme Court had quashed allocation of 214 out of 218 coal blocks allotted to various companies since 1993.
Jindal was hopeful that the company would secure a coal block, if the Centre starts auction of blocks for steel companies and coal gasification projects.
At least 60,000 tonnes of coal could not be supplied to various consumers from Balram open cast project (OCP) at Hingula area in Talcher coalfields due to the "illegal" stoppages by the residents of Danara village since October 6, the MCL official said.
"Major consumers including NALCO, JITPL, JSPL, BSL, SPCL, GMR and others were affected due to the stoppages of coal dispatch from Solada stock by Danara villagers and Balram Truck Association," the official said.
The villagers on Thursday had also stopped the work of over burden removal at Mahalakshmi outsourcing patch of Balram OCP.
Due to the obstruction, the work of over burden removal of about 30,000 to 35,000 CuM (cubic metre) is being disrupted per day, resulting to 20,000 tonne less coal exposure daily, the official said.
Coal dispatch of around 15,000 tonnes is also affected due to which MCL has been losing around Rs 1.47 crore of revenue directly while the government exchequer is losing Rs 20.58 lakh per day.
Similarly, the residents of Ubuda village on Friday stopped mining operations at a mine of Lakhanpur OCP of Ib Valley Coalfields in Jharsuguda district, demanding employment.
The MCL, however, said the villagers' demand of employment was "beyond R&R (resettlement and rehabilitation) Policy" of the state government.
"The Ubuda village residents were provided due compensation and employment as per R&R Policy of Odisha earlier and they are now demanding subsequent employment for their children as well as the land less people residing there," the official said.
The Lakhanpur OCP is supposed to produce around 65,000 tonne of coal daily but it has now come down to 26,000 tonnes due to disturbances.
The state owned Odisha Power Generation Corporation (OPGC) is one of the major consumers of coal from Lakhanpur OCP.
According to sources, the State government constructed a micro lift irrigation project in Parang adjacent to JSPL plant in 2002 after acquiring land from the locals.
However, even 10 years after completion of the project, the farmers are yet to get any benefits from the project and the locals have blamed the JSPL authorities of arbitrarily encroaching at least 4.5 acre land meant for the project.
An investigation by OTV revealed that while Jindal authorities have filled up the canal system constructed for the lift irrigation project, the district administration seems to have turned a blind eye towards the development. Taking note of allegations by the locals on illegal activities by JSPL, the then district collector directed Banarpal Tehsildar on July 18, 2011 to conduct field enquiry and take necessary steps for eviction if JSPL authorities are found to be illegally occupying the area.
Thereafter, the collector also asked Executive Engineer of Micro Irrigation project of Dhenkanal division to take immediate measures like demarcation of land allegedly encroached by Jindal authorities and the amount of land illegally given away by the irrigation department. However, 8 years after the development, the directives have not materialised into action.
“We are the ones who had to suffer the most because not only we lost our land but also we are yet to get any irrigation benefits from the project,” said Saroj Dalabehera, a complainant.
“Now after such a long period of inaction, when we try to approach the administration, we are forced to move from pillar to post because one is passing the buck to someone else. If the government plans for some kind of compensation or alternative irrigation facility, we are also ready to give our land,” said another local.
Asked about the issue, the current Chhendipada Tehsildar, Daniel Ekka accepted that it is the responsibility of the district administration to look into the issue but he clarified that since it has been pending for quite some time, they don’t have any records of previous investigation.
On the other hand, despite multiple attempts, no comments could be obtained from JSPL authorities.
"To support India''s war against COVID-19, @JSPLCorporate is making an immediate contribution of Rs 25 crores to the PM Cares Fund. We will continue to extend every possible support to our nation in this fight against Covid-19," JSPL Chairman Naveen Jindal said in a tweet.
To support India’s war against COVID-19, @JSPLCorporate is making an immediate contribution of Rs 25 crores to the PM Cares Fund. We will continue to extend every possible support to our nation in this fight against #Covid19 . #IndiaFightsCorona @narendramodi @PMOIndia pic.twitter.com/y0Gfqrw13Q
— Naveen Jindal (@MPNaveenJindal) March 31, 2020
JSPL Foundation is providing food and other essential supplies to the local communities in the vicinity of its manufacturing locations.
Also Read: Reliance Contributes Rs 500 Crore & HAL Rs 26.25 Crore To PM CARES Fund
As part of relief, Jindal Steel and Power Ltd (JSPL) has also upgraded its hospitals to fight this pandemic by equipping them with additional ventilators and Personal Protective Equipment (PPE) kits and creating isolation wards.
Moreover, JSPL has also engaged women Self Help Groups (SHGs) to manufacture over one lakh masks and distribute them to prevent the spread of coronavirus, Jindal said.
The company through its philanthropic arm JSPL Foundation is distributing masks and other hygienic products such as sanitiser, hand wash and bottles of phenyl to those living near the plant sites of the company in Chattisgarh and Odisha.
Hero Group has pledged Rs 100 crore as aid for the ongoing Covid-19 relief-efforts in India.
Hallf of this sum, Rs 50 crore, will be contributed to the PM Cares Fund and the remaining Rs 50 crore will be spent in other relief efforts.
The Group companies contributing to this fund include Hero MotoCorp, Hero FinCorp, Hero Future Energies, Rockman Industries and Hero Electronix.
Read Also: Ola Group Donates Rs 20 Crore For Drivers’ Fund To Combat COVID-19
"Hero Enterprise and AG Industries have also contributed to this fund," the Group said.
(With Agency Inputs)
It will be a port-based container manufacturing unit to be built on over 100 acres of land, JSPL Chairman Naveen Jindal said during a visit to Paradip Port.
The Paradip Port authorities have agreed to provide 100 acres of land required for the purpose, sources said.
Jindal held a meeting with senior officials of Paradip Port Trust on Tuesday and also discussed JSPL’s proposal for a dedicated railway freight corridor from Angul to Paradip.
The Vision 2030 is in keeping with its commitment to Prime Minister Narendra Modi's Aatmanirbhar Bharat Mission, and inspired by Chief Minister Naveen Patnaik's vision to make Odisha a 100-MT steel manufacturing hub and the late visionary Biju Patnaik's dream to make the state a leader in steel, company officials said.
As per the vision statement, JSPL would make its Angul Steel Plant the world's largest and greenest single-location steel plant, thus putting Odisha on the global steel map.
JSPL's Vision 2030 focuses on enhancing the capacity of its 6 MTPA Angul integrated steel plant. "At our existing steel plant, we are producing steel through one of its kind technology wherein swadeshi coal is being used to produce synthesis gas which is utilised for production of DRI," it said.
The Angul steel plant will expand its total capacity to 25.2 MTPA through clean energy resources with an additional investment of Rs 1.20 lakh crore by 2030, it said.
JSPL Angul will see an expansion of substantial green steel manufacturing capacity through Hydrogen-based DRI and EAF route. The complex will also house a 12.5 MTPA cement plant to utilize the blast furnace slag and fly ash to produce environment-friendly, green cement.
Stating that the company draws inspiration from Biju Babu's vision for Odisha, JSPL Chairman Naveen Jindal said the Chief Minister's leadership and robust roadmap make us all the more committed to the state.
"JSPL today is the largest private investor in the state of Odisha. The state will remain our preferred destination for investments and expansions. A substantial part of this investment will come from our internal accruals/equity infusions. Odisha will be the powerhouse leading Eastern India's onward march, and JSPL will play its part in the same.
I am sure many others will also come forward to invest in the state and work with its outstanding human resources," Jindal said.
JSPL's Vision 2030 for 25.2 MTPA steel making capacity at Angul also entails substantial investments to develop the iron ore and coal mineral industry and build a world-class logistics infrastructure.
The company also plans to invest in a state-of-the-art Port and a dedicated Railway Line to connect the Port, the Angul facility, the Barbil Pellet Plant and its Raigarh plant in Chhattisgarh. The company is focussing on the robust supply chain mechanism and raw material transportation.
JSPL initiatives, thus, are expected to create 60,000 plus direct job opportunities and around 3,00,000 indirect employment opportunities in Odisha.
The company's operations in Odisha are likely to generate economic activity to the tune of nearly Rs 1.5 lakh crore annually, with the state exchequer getting richer by potential revenues of around Rs 7,500 crore per annum.
The company remains steadfastly committed to improving the quality of life of the local communities of Odisha through its various CSR programmes focussed on health care, education, skill development, sustainable livelihood, sports, art and culture.
The company also requested government officials for abolition of electricity duty and giving tax benefits of 15 per cent to brownfield projects as it is being given to greenfield projects.
Odisha's Steel and Mines Minister Prafulla Kumar Mallik and Minister of State for Industry Dibya Shankar Mishra appreciated JSPL's proposal for setting up the largest steel plant of the world at Angul.
Chief Secretary Suresh Chandra Mahapatra assured all support from the state government to achieve the goal of setting up 25.2 MTPA steel plant and for the required infrastructure.
"JSPL is known for its cutting-edge, environment- friendly technological innovations. We have undertaken some of the most state-of-the-art industrial innovations at our Angul unit in Odisha. Our Vision 2030 is part of the same journey, with the objective to put Odisha on the global map, besides making the state Eastern India's jewel," JSPL MD V R Sharma said.
(PTI)