By Anurjay Dhal
BHUBANESWAR: Call it Jindal Brothers-B Prabhakaran unstoppable as JSW Steel resumes Operations in Nuagaon Iron Ore Block under Joda-Koira mining circles of Odisha’s Keonjhar-Sundargarh regions. Nuagaon Iron Ore block was the largest of the auctioned mines in Odisha, earlier held by KJS Ahluwalia Group.
Flanked by B Prabhakaran, the MD of Thriveni Earth Movers Pvt Ltd and his younger brother Naveen Jindal of JSPL, Sajjan Jindal of JSW Steel has started work at Nuagaon Block. Family members of Jindal Brothers and B Prabhakaran were also present at the mines site.
JSW Steel has got nod of Union Forest and Environment Ministry to produce 29 Million MT per annum from 4 blocks of Nuagaon Iron Ore, Ganua Iron Ore, Jajang Iron Ore and Narayanposhi Iron and Manganese.
Company hoped that once the 4 blocks functions with full capacity, it is expected to produce around 36 Million MT per annum and meet about 70% of its requirements. At present, Sajjan’s JSW has only 15% own Iron Ore resources.
JSW won 4 major blocks which earlier held by KJS Ahluwalia Group and Rungta Mines Ltd Group– Nuagaon (won on January 31),Narayanposhi ( won on February 2) and Ganua ( won on February 5) and Jajang ( won January 6) – with total ore reserve of 1,138.34 million tonnes. With the 4 Mines, an iron ore reserves linkage of more than 1,100 million tonnes has been secured for JSW Steel of Sajjan Jindal.
Bank of Baroda last month had extended financial assistance to JSW Steel “in the form of term loan for a sum not exceeding of INR 1294.65 crores and bank guarantee facility for a sum not exceeding INR 1000 crores for the purpose of financing the upfront payment obligations of JSW under the tender documents as a preferred bidder for acquisition of mining lease pertaining 4 blocks in Odisha.
JSW Steel will have pay dues to Government for Nuagaon ,Narayanposhi,Ganua and Jajang blocks. Value of estimated reserves in INR Crores are as follows Nuagaon (Rs 1,85,683,47), Narayanposhi(Rs 42,571,12), Jajajng (Rs 5,511,44) and Ganua(Rs 24,982,79). This included 1% resource value, 0.5% affront payment and 0.5% performance security. For example, 1% security deposit for Nuagaon block will be around Rs 1856 Crore and NPV and stamp duty will be calculated extra.
The Sajjan Jindal is eyeing on POSCO site in Odisha’s Jagatsinghpur close to Paradip Port and debt ridden Bhushan Steel Power Limited to expand its mining and steel business in Odisha like his brother Naveen Jindal, who owns Jindal Steel and Power Limited, which running an Integrated Steel plant in State’s coal bearing Angul district and has couple mines block including Guali Iron Ore Block in Keonjhar-Sundargarh regions and also having stake at the controversial Sarda Mines Pvt Ltd. Both JSW and JSPL are also eyeing several Coal blocks in Odisha.
Lenders to Bhushan Power and Steel have intimated to JSW Steel that they would take “appropriate steps” if it does not implement the resolution plan for BPSL in two weeks, among them the invoking of guarantees. A letter was sent to JSW Steel as the company is yet to pay the `19,350 crore, as per the court-approved resolution plan.JSW Steel had earlier missed the deadline of March 17 to make the payment of Rs 19,350 crore as per approval from National Company Law Appellate Tribunal (NCLAT).
