As India begins to open its economy, Sajjan Jindal, Chairman of JSW, expects normalcy for the steel sector return by September-October. Speaking exclusively to CNBC-TV18, Jindal highlighted that the steel industry needs to be incentivised and duties need to be rationalised to become Aatam Nirbhar Bharat.

He also said coal is a dying commodity and JSW’s focus will primarily be on steel and renewables instead of focusing on coal-based expansion.

Even as steel exports have increased sharply by 76 percent year on year basis at 1.71 million tonnes in April-May this year. JSW expects 80 percent domestic supply and 20 percent export level by September-October and a lot will also depend on how the automobile sector bounces back.

“Government has to incentivise local industries to be able to become self-reliant. Need to incentivise steel industry via tax sops or via protection from imports. We also need to rationalise duties on imports of raw materials as all these extra costs associated with the production of steel in India are $40 per tonne “ said Sajjan Jindal, Chairman, JSW.

The government is expected to begin the process of auction of 50 coal blocks for commercial mining by the private sector for the first time on June 11.

" Government's list of 50 mines for auctions is good, heartening to see that govt is not trying to maximize profits for itself. The government’s concept of auctioning coal mine has failed. as coal is a dying commodity & will not have much relevance beyond 15 years” said Sajjan Jindal.

Jindal also added that the company has no intention of backing out of the Bhushan Steel & Power asset bid made at Rs 19,700 crore and is awaiting the supreme court’s decision.

JSW has a debt of about Rs 53,000 crore and Jindal said that no fresh investment will be made in FY21 and is hopeful that the company will get back to the debt reduction plan in FY22.

First Published:Jun 8, 2020 4:37 PM IST