File_2012_Document1

72 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsDirectors’ ReportAnnual Report 2011-1273PROJECTS UNDER IMPLEMENTATION1. Steel Plant at Angul, OdishaThe Company is setting up 6 MTPA steel plant at Angul inthe state of Odisha. The following facilities are, at present,under installation:1.1) Coal Washery (2x 600 TPH)1.2) Sponge Iron Plant based on Coal Gasification(1.8 MTPA)1.3) Steel Melting Shop (1.64 MTPA)1.4) Plate Mill (1.5 MTPA)1.5) Captive Power Plant (6x135 MW)Out of the above facilities under implementation, theconstruction of Plate Mill has been completed and isexpected to be commissioned in financial year 2012-13.Apart from this, work on raw material handling plant, beamwelding plant, cross country pipeline, raw water reservoir,in-take pump house and a housing colony is at an advancedstage of implementation.The following facilities are also being set up at Angul:1.1) Coke Oven Plant (2.0 MTPA)1.2) Sinter Plant (4.0 MTPA)1.3) Pellet Plant (4.0 MTPA)1.4) Blast Furnace (3.2 MTPA)1.5) Sponge Iron Plant (2.0 MTPA)1.6) Steel Melting Shop (4.36 MTPA)1.7) Hot Strip Mill (4.5 MTPA)Department of Water Resources, Government of Odishahas given permission for drawing of 95.16 cusecs of waterfrom river Bramhani for the plant. Ministry of Environment& Forests, Government of India has issued environmentalclearance and Odisha State Pollution Control Board hasissued consent to establish for setting up of said steelplant. Technology suppliers for Sinter Plant (4.0 MTPA),Blast Furnace (3.2 MTPA) and Sponge Iron Plant (2.0 MTPA)have been finalised and discussions are under progress forfinalising technology suppliers for remaining facilities.2) Steel Plant at Patratu, JharkhandThe Company envisages setting up of 6 MTPA integratedsteel plant at Patratu in the state of Jharkhand and in itsfirst phase, is implementing 3 MTPA steel plant.Agreement has been signed with Government of Jharkhandfor supply of 66.54 mcm of water from Damodar Basin forthe plant and an agreement with Jharkhand State ElectricityBoard is under process of renewal for supply of 20 cusecsof water. Ministry of Environment & Forests, Governmentof India has issued environmental clearance and StatePollution Control Board, Jharkhand has issued consent toestablish for setting up of said steel plant. The Company hasalready acquired 1,039 acres of land and process is on foracquiring balance 2,205 acres of land.3) Steel plant, Raigarh, ChhattisgarhThe existing steelmaking capacity at Raigarh Works is3 MTPA. Considering the increasing demand for steel incoming years, the Company plans to enhance steelmakingcapacity at Raigarh Works to 11 MTPA and is in the processof seeking various approvals. The Company has entered intomemoranda of understanding with the State Governmentof Chhattisgarh in terms of which the State Governmentof Chhattisgarh will extend necessary assistance to theCompany in expeditiously obtaining various approvals,coal and iron ore linkages, environmental clearances,acquisition of land etc. for implementing the said expansionplan. Ministry of Environment and Forests, Government ofIndia has issued Terms of Reference (TOR) for the proposedexpansion in terms of which the Company has submitteddraft Environment Impact Assessment and EnvironmentManagement Plan to the Chhattisgarh EnvironmentConservation Board, Raipur, Chhattisgarh.In order to further improve and strengthen the presentoperations, the following facilities are being added:-3.1) Additional mill for pulverised coal injection is beingset up which will help in increasing the coal injectionin Blast Furnace thereby reducing the consumption ofcoal as well as improving the productivity.3.2) Third Turbo-blower is being installed which will act asstandby to the existing two turbo blowers and ensurecontinuity of hot blast air to Blast Furnace in case ofshut down of any turbo.3.3) Slab Caster upgradation is being done to increasethe width of the slabs. This will help in rolling theincreased width plates from the Plate Mill.3.4) Additional 6 Silos are being set up to blend differentkinds of coal. Low cost coal is blended with high gradecoking coal to reduce the cost of blended coal andthus reduces the cost of coke. This will reduce the costof conversion of hot metal in Blast Furnace.3.5) Second Ladle Refining Furnace is being installedin Steel Melting Shop - III which will increase steelmakingcapacity by increasing the capacity ofsecondary steel making.4. Pellet Plant at Barbil, OdishaThe Company is setting up one more 4.5 MTPA Iron OrePellet Plant with wet grinding process at Barbil for whichbasic engineering and proprietary equipment have beenordered. Water approval, environmental clearance andconsent to establish for setting up 10 MTPA Pellet plant atBarbil have already been received. Detailed engineeringagency has been finalised and critical packages ordering isin progress. The pelletisation will be a value added processof iron ore fines and better utilisation of powdery oreavailable in the mines.5. Shadeed Sponge Iron PlantAs a part of expansion, Shadeed Iron & Steel Co. LLC, Oman,a subsidiary company, is setting up a 2 MTPA Steel MeltingShop. M/s Danieli, Italy has been finalised as the technologyand core equipment supplier and M/s Idom, Spain has beenfinalised as the Engineering Consultant.SUBSIDIARY COMPANIES AND THEIRBUSINESSJindal Power Limited (JPL), operating 1,000 MW (4 X 250 MW)power plant in Raigarh (Chhattisgarh) has closed financial year2011-12 with a total sales of ` 3,040.35 crore and earned aprofit after tax of ` 1,764.99 crore. JPL is expanding its powergeneration capacity by setting up 2,400 MW (4 X 600 MW)power plant adjacent to its existing works. JPL envisagessetting up hydro projects in the State of Arunachal Pradesh inJoint Venture with Hydro Power Development Corporation ofArunachal Pradesh Limited and thermal power projects in thestates of Jharkhand and Odisha. Shadeed Iron & Steel LLC, Oman,operating 1.5 MTPA Hot Briquette Iron plant achieved sales of` 2,794.30 crore in the financial year 2011-12 and earned aprofit after tax of ` 244.17 crore. Jindal Mining SA (Pty) Limited,South Africa, operating coal mines achieved a sales of ` 451.02crore in the financial year 2011-12 and earned a profit after taxof ` 38.18 crore.Africa continent and Australia are rich in mineral resourcesand your Company, through its subsidiary companies, isexpanding its business activities by acquiring, exploring andoperating iron, coal, limestone and base metals. The operationsin Kiepersol Colliery in South Africa stabilised over the lastyear enabling a ramp up of production in the coming years.The Company also continues to pursue more opportunitiesin mining of coal, iron ore and manganese in this country. InMozambique, the coking coal project is in the final stages ofdevelopment. The sale is likely to start in financial year 2012-13.TRANSFER TO INVEStoR EDUCATION ANDPRotectioN FUNDPursuant to Section 205C of the Companies Act, 1956, theCompany has transferred unpaid / unclaimed final dividendfor financial year 2003-04 and interim dividend for financialyear 2004-05 amounting to ` 20,03,753/- (Rupees twentylacs three thousand seven hundred and fifty three only) and` 16,77,124/- (Rupees sixteen lacs seventy seven thousand onehundred twenty four only) respectively to Investor Education and