JSW Steel, Jindal Steel, and Adani Natural Resources are among 46 companies vying for 20 coal blocks.
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The Ministry of Coal has received 70 bids from 46 companies for 20 coal blocks under the 11th round of commercial coal mine auctions. The coal blocks on offer were for non-coking coal, except for one block of coking coal. The participating companies include several major players in the Indian coal industry, such as JSW Steel, Jindal Steel and Power, Coal India’s arm Western Coalfields, and Adani Natural Resources.
Interestingly, more than 15 new companies, including a Coal India subsidiary, have participated in the auction for the first time. Other notable companies that submitted bids include Bharat Aluminium Company, The Andhra Pradesh Mineral Development Corporation, Orissa Metaliks, Lloyds Metal, and Odisha Coal and Power.
The bidders will undergo a multi-disciplinary technical evaluation, and those who are technically qualified will be shortlisted for participation in an electronic auction, which will be conducted on the MSTC portal. The bidding process is considered unprecedented, with a high response rate from interested companies.
This auction is seen as a major step forward for the Indian coal industry, as it marks the first time that commercial coal mines are being offered for auction to private companies. The move is expected to boost the country’s coal production and meet the increasing demand for electricity and other uses.
The outcome of the auction is eagerly awaited, as it will provide a glimpse into the future of India’s coal sector and the roles that private companies will play in its development. With the successful auction, the country is likely to see increased investment in coal mining, exploration, and development, leading to improved coal supplies and reduced imports.
Here’s a rewritten version of the title:Steel Magnate: Naveen Jindal’s Ambitious Overseas VentureThis rewritten title maintains the essential information and themes of the original, but presents it in a more concise and catchy way. It also uses a more creative and attention-grabbing approach, particularly with the use of the word Steel Magnate to convey a sense of strength and grandeur.
Naveen Jindal, founder of Jindal Steel (JSPL), is on the cusp of building a massive steel empire with a combined annual capacity of 14-16 million tonnes. He currently owns a portfolio of end-to-end steel assets across Europe, the Middle East, and Africa, including mines, steel units, and downstream value-added steel facilities. His next target is to acquire Italy’s Acciaierie d’Italia, the largest steel plant in Europe, for a proposed investment of €2 billion.
Jindal’s private companies, Vulcan Minerals and Vulcan Steel, operate a coal mine in Mozambique, an iron ore mine in Cameroon, and a steel plant in Oman, with plans to set up a green steel plant in Duqm. His son, Narendra Kumar Misra, has stated that their plan is to transform the former Ilva plant in Italy into one of the leading and largest producers of low-carbon steel in Europe.
The proposed Italian acquisition, if successful, would make Jindal one of the largest steel czars in the world, alongside Lakshmi Mittal and Sajjan Jindal, head of JSW Steel. Jindal’s private venture, Jindal Steel (International), is among the favorites to win the bid for the entire operations of Acciaierie d’Italia.
However, this expansion raises concerns about the potential conflict of interest and how it may affect the minority shareholders of JSPL. Some experts have questioned the wisdom of promoting company resources and bandwidth on unlisted companies, citing a potential disservice to the listed company and its investors.
Jindal’s green energy plans, including his power arm Jindal Power, are also significant, with a focus on renewable energy and green hydrogen production. The company has plans to set up 2 GW of thermal and 5.4 GW of hydro power projects in India and Africa, and 650 MW of thermal power assets in Africa.
Business Leader Dinesh Kumar Saraogi Launches Advisory Firm to Simplify Setup Process for New Steel Projects.
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Dinesh Kumar Saraogi, an experienced professional with a long-standing track record in the steel industry, has unveiled a new advisory consultancy, making it easier for companies to establish new steel projects. The advisory consultancy aims to provide expert guidance to entrepreneurs, business leaders, and industry professionals, helping them navigate the complex process of setting up a new steel project.
Saraogi, a renowned expert in the steel industry, has over two decades of experience in the field. He has worked with several prominent steel companies, including JSW Steel, Sajjan India, and MBM, among others. His expertise spans across various sectors, including production, sales, and marketing. With his vast experience and knowledge, Saraogi’s advisory consultancy is poised to become a go-to destination for those seeking expert guidance in setting up a new steel project.
The advisory consultancy offers a range of services, including market research, project conceptualization, project planning, and implementation. Saraogi’s team of experts will work closely with clients to understand their requirements and provide customized solutions, helping them to identify potential obstacles, develop strategies, and overcome challenges.
According to Saraogi, his advisory consultancy is designed to simplify the process of setting up a new steel project. “We understand that establishing a new steel project can be a daunting task, filled with uncertainties and complexities,” he said. “Our goal is to provide expert guidance, helping entrepreneurs and industry professionals to make informed decisions, navigate the complex regulatory environment, and ensure the success of their project.”
With his advisory consultancy, entrepreneurs and business leaders can rest assured that they are receiving expert guidance from a seasoned professional with a deep understanding of the steel industry. Saraogi’s team will provide invaluable insights, helping clients to build a strong foundation for their project, avoiding costly mistakes, and ensuring compliance with regulatory requirements.
Overall, Saraogi’s advisory consultancy marks a significant development in the steel industry, offering entrepreneurs and business leaders a trusted partner in navigating the complexities of setting up a new steel project.
What’s behind the massive POSCO-JSW steel plant in Odisha’s CM’s home district, and what does it mean for the region?
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The JSW Group and POSCO, a South Korean steel giant, have announced plans to set up a mega steel plant in Keonjhar, Odisha, with a production capacity of 5 million tonnes per annum (MTPA). This project is significant as it will be POSCO’s second attempt in Odisha after a previous attempt in 2005 was shelved due to land acquisition hurdles. However, with the change of regime and the identification of two suitable locations for the plant, the project is now expected to take off.
The plant will be a joint venture between JSW and POSCO, with JSW providing the necessary raw materials from its four steel mines in the state. The project is expected to create employment opportunities and boost economic development in the area and the entire state. The government has also announced plans to expand the four-lane road connecting Keonjhar to Paradip Port to an eight-lane road, making it easier for transportation.
Chief Minister Mohan Majhi has hailed the project as a major achievement, stating that it will make Odisha one of the major steel producers in the world. The project is also expected to boost Odisha’s economy and employment, help India become a leader in sustainable steel production, and encourage more investment in green industrial initiatives.
The location of the plant in Keonjhar is strategic, with the district having a lot of iron ore and active mining activities. JSW already has an iron mine in Keonjhar’s Joda, which will cater to the needs of the raw material for the proposed plant. The project is expected to have several benefits, including global recognition for Odisha, strengthening of the state’s industrial sector, and helping India achieve its sustainable development goals.
Overall, the joint venture between JSW and POSCO is expected to bring significant economic benefits to Odisha and India, and is a major step towards achieving sustainable development goals.
JSW Steel cleared in coal block case; court discharges company’s criminal liability.
A court in New Delhi has discharged JSW Steel Ltd, formerly known as Monnet Ispat, in a case related to alleged irregularities in the allocation and running of two coal blocks in Chhattisgarh. The court’s decision comes after JSW filed a discharge plea, citing immunity granted under the law, as the company took over Monnet Ispat under the Insolvency and Bankruptcy Code (IBC).
The case dates back to September 2012, when the Central Bureau of Investigation (CBI) filed a case against JSW and others related to the alleged irregular allocation of coal blocks between 1993 and 2005. The coal blocks in question, Gare Palma and Rajgamar Dipside, were allegedly allocated to JSW’s predecessor, Monnet Ispat, without a transparent bidding process.
However, under the IBC, JSW was able to take over Monnet Ispat through a resolution process, which granted the company immunity from prosecution. The adjudicating authority approved JSW’s application to take over Monnet Ispat, and the court has now discharged JSW from the case.
This decision is significant, as it marks another instance of a company being able to escape criminal prosecution under the IBC. The IBC has been criticized for providing an easy exit route for companies involved in financial wrongdoing, and cases like this one have raised concerns about the lack of accountability in the country’s corporate sector.
The discharge of JSW also raises questions about the effectiveness of the CBI’s investigation into the coal block allocation scam. The CBI had filed multiple cases against various companies and individuals involved in the scam, but many of these cases have since been closed or discharged due to various reasons.
Overall, the discharge of JSW Steel Ltd in the coal block allocation case highlights the challenges in holding companies accountable for financial wrongdoing in India, and the need for a more robust regulatory framework to prevent such cases in the future.
JSW Steel announces May 2024 crude steel output of 20.98 lakh tonnes, marking a 4% decline from the same period last year.
JSW Steel has reported its crude steel production for May 2024, posting a production of 20.98 lakh tonnes, which is a 4% year-on-year (YoY) decline. This figure is lower compared to the 21.67 lakh tonnes produced in May 2023. Despite the decline, the production volume for the month is still relatively stable compared to the previous month, when the company produced 20.85 lakh tonnes. The YoY decline is likely due to various factors such as raw material supply chain disruptions and fluctuations in demand. However, JSW Steel has been working to optimize its operations and improve productivity, which has helped the company maintain its production levels overall. The company’s production figures for May 2024 are in line with market expectations, and investors will be monitoring the company’s performance closely as it looks to increase its steel production and profitability in the coming months.
Surging Chinese imports are eroding the COVID-related cash reserves of Indian steel giants Tata Steel and JSW Steel, according to reports.
Tata Steel and JSW Steel, two of India’s largest steel companies, are facing a challenge from rising Chinese imports. The COVID-19 pandemic had led to a surge in demand for steel in India, resulting in a significant increase in prices and profits for the steel industry. However, with the pandemic under control, demand has slowed down, and prices have fallen. Meanwhile, Chinese steel exports have increased, posing a threat to Indian steel companies.
According to data, China’s steel exports to India have risen by 34% in the first quarter of 2022 compared to the same period last year. This has led to a decline in Tata Steel’s and JSW Steel’s profits, with the companies’ cash piles shrinking. Tata Steel’s cash and cash equivalents stood at Rs 22,300 crore in the first quarter of 2022, down from Rs 31,400 crore in the same period last year. JSW Steel’s cash and cash equivalents declined to Rs 14,300 crore from Rs 18,400 crore over the same period.
The rise in Chinese imports is expected to continue, posing a challenge to Indian steel companies. The companies are likely to face pricing pressure and may need to reduce production to maintain profitability.
JSW Steel’s coal deal is on hold due to a legal dispute in Mozambique
The content is about the Jindal family’s business empire in India. OP Jindal, a businessman, built an empire worth $35 billion in Mumbai before his death. The empire was divided among his four sons, with his widow Savitri Jindal overseeing the business. Two of OP Jindal’s sons, Sajjan Jindal and Naveen Jindal, founded JSW Steel and JSPL (Jindal Steel and Power Limited) respectively. These companies are among the largest in the country, with JSW Steel being one of the leading steel producers in India. The Jindal family’s business empire is one of the most prominent in the country, with Savitri Jindal being the richest woman in India.
Mozambique’s legal disputes have put a major coal deal between Indian steel giant and the African nation on ice, according to Bloomberg.
Indian steel giant, JSW Steel, has seen its $151 million coal deal in Mozambique frozen due to a legal dispute. The deal, closed in 2017, was to acquire coal from Riversdale Mining, a Mozambican company, to fuel its Indian operations. However, the Mozambican government has been challenged in court by a local company, Montepuez Ressureição, which claims the deal was illegal. The local company alleges that the government did not follow proper procedures when selling the blocks of coal and that the deal was not transparent. The court has suspended the deal, citing irregularities. JSW Steel has denied any wrongdoing and is seeking to resolve the issue. The dispute has left the Indian steel giant in a precarious position, as it needs the coal to meet its production needs. The row highlights the challenges faced by foreign investors in Mozambique, where corruption and poor governance can make deals vulnerable to legal challenges.
Mozambican legal dispute puts Indian steel major JSW Steel’s coal deal on hold
India’s largest steelmaker, JSW Steel, has been sidelined by a legal dispute over a coal concession in Mozambique. The company had agreed to buy Minas de Revuboè (MdR) in May, but the Mozambican government revoked the license and awarded it to Stonecoal SA, which is directed by four employees of JSW Steel’s rival company, JSPL. The dispute has led to a legal battle between MdR and Mozambique’s government, with MdR seeking to have the original concession reinstated. The issue is significant for Mozambique, which is facing civil unrest and a deepening economic crisis. The deal was valued at $50 billion and would have provided a major boost to Mozambique’s economy. The dispute has also impacted India’s steel industry, as JSW Steel is one of the country’s largest steelmakers and needs to source large volumes of coking coal and iron ore for its operations. The dispute is set to continue, with MdR seeking to have its concession restored and JSW Steel trying to salvage the deal.
JSW Steel’s coal acquisition deal in limbo due to legal disputes in Mozambique
India’s largest steelmaker, JSW Steel Ltd, has been affected by a legal dispute over a coal concession in Mozambique. The company agreed to buy Minas de Revuboè (MdR) from the estate of Ken Talbot, an Australian mining tycoon, in May. However, the Mozambican government revoked MdR’s lease, citing a lack of exploration works. The government then offered the concession to Stonecoal SA, which has four directors employed at JSW’s sister company, JSPL. The dispute has triggered a legal battle between MdR and the Mozambican government, with MdR seeking to have the original concession reinstated. The company has also initiated arbitration proceedings in Geneva. The dispute comes at a critical time for Mozambique, which is facing civil unrest and disputed elections. The outcome of the dispute will impact JSW’s plans to mine more coking coal and iron ore, which are essential for its steel operations. The company has spent $300 million on the project and is seeking to complete the sale to JSW.
JSW Steel is slapped with a ₹1.29 crore tax demand by the GST department, according to ET LegalWorld.
JSW Steel Limited has received a notice from the Office of Assistant Commissioner of Central Tax, Hosapete Division, demanding a tax amount of ₹1,29,36,981 along with interest and penalty of ₹1,24,72,581 and ₹1,29,36,891, respectively. The matter dates back to FY 2017-18, when the company suo-moto reversed Input Tax Credit (ITC) on a monthly basis and then reclaimed excess ITC in July 2019. However, the reclaim was disallowed due to being made beyond the allowed time limit under Rule 42 (2) (b) of the CGST Rules, 2017. The company plans to challenge the order by filing an appeal. This information was disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
ICICI Securities bolsters its recommendations, upgrading Tata Steel and JSW Steel to ‘Buy’, as it releases its top picks in the metal sector.
ICICI Securities has upgraded Tata Steel and JSW Steel to a “Buy” rating, citing improvement in the profitability and cash flow of the steel industry. The brokerage firm has also kept its overweight call on the metal sector, citing factors such as demand revival, production cuts, and consolidation in the industry. ICICI Securities expects the sector to continue its upward momentum, driven by increased demand, cost control measures, and improving corporate profitability. The top picks in the sector, according to ICICI Securities, are Tata Steel, JSW Steel, and Hindalco Industries. The firm has also listed top avoided stocks as Steel Authority of India (SAIL) and Nippon Denro Opco (formerly known as NMDC). Overall, ICICI Securities is optimistic about the metal sector’s prospects, citing expectations of a metal price uptick, reduction in inventory levels, and improvement in realizations.
JSW in discussions with Geely to establish a joint venture for electric vehicle production.
Sajjan Jindal, Managing Director of JSW Steel, is leading the company’s efforts to expand in the electric vehicle (EV) market. JSW is in talks with multiple auto majors, including Chinese company Geely, to form joint ventures for EV production. The company is also working on launching its own EV lineup, including passenger and commercial vehicles. The partnership with SAIC, the parent company of MG Motor, is not exclusive, and JSW is free to explore other partnerships to expand its presence in the auto sector. The lack of majority stake in MG Motor India could be a sticking point, as SAIC holds 49% of the company, while JSW owns 35%. JSW has been in discussions with other companies, including Ford and Volkswagen, but no deals have been confirmed. The company is betting big on the Indian EV market and is aggressively pursuing multiple opportunities to gain a strong foothold.
Indian Steel Giant Revolutionizes U.S. Operations through Strategic Merger with Key Subsidiary
JSW Steel has completed a restructuring process in the US, merging two subsidiaries, Purest Energy LLC and Caretta Minerals LLC, into their respective holding companies, Periama Holdings LLC and Planck Holdings LLC. This move aims to simplify operations, reduce complexity, and strengthen the company’s market presence in the US. The restructuring process does not involve the sale of any overseas assets or changes to the shareholding pattern, as the affected subsidiaries were wholly owned.
The merger is expected to improve operational efficiency, financial consolidations, and regulatory compliance, while reducing redundancies and overhead costs. The two merged companies operated in coal mining and met coal production in West Virginia, with Caretta Minerals reporting a revenue of approximately Rs 72 crores in FY23. JSW Steel plans to focus on simplification and streamlining its group structure to improve business operations and drive growth.
The company intends to expand its operations further, aiming to reach a production capacity of 50 million tonnes by FY31. With strong growth expectations, JSW Steel is optimistic about its future performance. The restructuring is an important step in the company’s efforts to strengthen its US market presence and build a more efficient and robust business model.
Passage of Karnataka Minerals Tax Bill to Severely Impact Three Key Metal Corporations
According to Nuvama Research, Vedanta will be severely impacted by future volumes from Karnataka mines. The company will need to pay a 3x royalty rate of 15% as well as a Rs 100 per tonne tax on iron ore. In contrast, NMDC will only need to pay a Rs 100 per tonne tax and an additional 22.5% tax on the Indian Bureau of Mines (IBM) price of iron ore. Nuvama suggests that Vedanta may struggle to pass on the entire increase in costs to customers. JSW Steel, which operates captive mines, will only need to pay a low Rs 100 per tonne tax. However, the company may still be indirectly affected by higher prices from NMDC and other miners. Overall, the new taxes and royalty rates are likely to have a significant impact on Vedanta’s profits and operations.
India considers imposing a temporary 25% tariff to curb the influx of cheaper Chinese steel imports.
India is likely to impose a “safeguard duty” or temporary tax of up to 25% on steel imports to curb cheap imports from China, according to industry and government sources. The decision was made following a meeting chaired by Commerce Minister Piyush Goyal, where small industries dropped their opposition after being assured they would not be hit by higher steel prices. Small manufacturers, who consume around 1 million metric tons of steel annually, are expected to benefit from the arrangement, with prices around 20% lower than market rates. Major steel producers such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about cheaper imports from China. The import of steel has surged to a record high in the current financial year, with India becoming a net importer of the alloy. The government is investigating whether cheap imports from China have harmed domestic steelmakers and will impose the temporary tax once the investigation is complete.
JSW Steel Forms Strategic Partnership with POSCO of South Korea to Develop Steel Manufacturing, Electric Vehicle Batteries, and Renewable Energy Projects
JSW Steel, an Indian steel giant, has formed a strategic partnership with South Korea’s POSCO (Pohang Iron and Steel Company) to collaborate on various business areas. As part of the partnership, the companies will jointly operate a 6 million tons per annum steel plant in India. Additionally, JSW Steel will supply automotive-grade steel to POSCO’s affiliates in South Korea and Europe. The duo will also work together in the development of electric vehicle (EV) batteries and renewable energy projects.
JSW Steel wins appeal, with the Supreme Court ordering the restoration of properties previously attached.
The Enforcement Directorate (ED) attached Bhushan Power’s assets under the Prevention of Money Laundering Act (PMLA) due to alleged fraud and money laundering by the company’s promoters. The Committee of Creditors (CoC) challenged the attachment during the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), claiming it violated IBC protections. The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) approved JSW Steel’s resolution plan, vacating the ED’s attachment. The ED appealed to the Supreme Court, opposing the plan and claiming that the benefit of Section 32A of the IBC would not apply. In December, the ED filed an affidavit stating that, without prejudice to its rights, it would allow JSW Steel to take control of the attached properties. The Supreme Court granted permission, directing the ED to hand over control of the properties to JSW Steel. The case involves a complex interplay between insolvency proceedings under the IBC and asset attachment under the PMLA.
Lancy Varghese, the compliance officer at JSW Steel Limited, has resigned.
Lancy Varghese, Company Secretary and Compliance Officer of JSW Steel Limited, has resigned from his position effective December 23, 2024. He will be pursuing an alternative career opportunity outside the JSW group. The company has acknowledged his dedication and commitment over his 25-year tenure and wishes him well in his future endeavors. Lancy expressed gratitude to the Board of Directors, management, colleagues, and stakeholders for their support and cooperation during his time at the company. His resignation is disclosed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Thyssenkrupp Electrical Steel India’s acquisition by JSW Steel’s joint venture arm is cleared by CCI.
The Competition Commission of India (CCI) approved four deals in a row, including JSW Steel’s subsidiary buying Thyssenkrupp Electrical Steel India for ₹4,051 crore and Abu Dhabi National Oil Company acquiring the entire stake of chemical company Covestro AG. Further, Blackstone’s associate acquired stakes in Bagmane Developers and Bagmane Rio, and purchased a chemical facility. There were also clearance for joint ventures of foreign companies participating in various deals across different jurisdictions. These acquisition deals valued at multiple million dollars include JSW and JEF Steel acquisition.
JSW Steel’s Q2 net profit may slide 35.2% year-on-year to ₹1,550 crore: PL Capital expects
JSW Steel’s performance is expected to be impacted in Q2 FY25, with its Profit After Tax (PAT) likely to decline by 35.2% YoY to Rs. 1,550 crore, according to a report by PL Capital. Despite this, the company’s crude steel production has seen a rise, with a 6-7% year-on-year (YoY) increase in Q2 FY25, reportedly led by strong demand and more efficient production. The company’s production stood at 6.77 million tonne (MT) in Q2 FY25. While the production numbers are a positive sign, the PAT decline is attributed to various factors, including pricing pressure, raw material cost inflation, and a higher tax outgo. The company’s stock has traded positively on the basis of its forecasted production growth, indicating investor optimism about its future performance. However, the 35.2% YoY decline in PAT is a concern, and the company’s actual performance will be closely watched by the market.
Source: https://www.moneycontrol.com/