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Last update: 2016-09-28 11:38:46 BankTrack
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About Jindal Steel & Power
Jindal Steel and Power Limited (JSPL) is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure. It currently has 3,400 megawatt of operational coal power capacity. It has stakes in nine coal blocks in India, as well as in mines in Australia, Indonesia, South Africa and Mozambique. The company realised in 2014-2015 a turnover of USD3.14 billion, while employing about 14,000 people. JSPL is a part of the USD18 billion diversified Jindal Group conglo-merate.
JSPL has six major subsidiaries:
- Jindal Power Limited which operates Jindal Tamnar Thermal Power Plant a 1000 megawatt coal-based thermal power plant in Raigarh district in state of Chhattisgarh. This plant is fully functional.
- Jindal Shadeed Iron and Steel, Oman
- Jindal Steel Bolivia
- Jindal Steel and Power Mauritius
- Jindal Africa Investments
- Skyhigh Overseas
12, Bhikaiji Cama Place
110 066 New Delhi
Ravi Uppal |
Jindal Steel & Power is listed at the BSE and at the NSE, both in India. The company was founded in 1969 by OP Jindal, the late father of the president Chairman Naveen Jidal. The promoter group Jindal Group holds 60% of its equity shares, 23% of its shares aree owned by Foreign Institutional Investors (FII). Around 100,000 individual public shareholders own approximately eight percent of its shares. The remaining nine percent shares are owned by others. Its list of shareholders can be found here.
In Mozambique problems arose with the resettlement process around its coal mines. When asked about governmental flaws in the pre-resettlement proces in October 2012 Jindal replied: "The government's speed is slow. They are not matching our speed. We are running at 100, they are running at 30". Jindal's power plant and mines in Chattisgarh are being resisted by local communities. Incidents of violence against protestors have been reported.Over 2,500 people still reside near the Chirodzi Coal Project's open-pit mine.
Despite the company's promise to resettle communities before mining commenced, resettlement has not taken place. The communities did not receive any form of compensation or substitute land for their sacrifices. Jindal continues to extract coal from land that is vital to the survival of residents and their families. The food insecurity that has resulted from Jindal's operations makes people vulnerable to poverty and hunger. Jindal uses dynamite to facilitate coal extraction at the site, resulting in coal dust clouds that severely impact the health of those living within a kilometer of the mine.
All of Jindal's coal blocks in India, are in forested regions with high livelihood dependence from local communities and wildlife presence. Since early 2013, Jindal has been mining without an approved Environmental Impact Assessment (EIA), which is in direct violation of Mozambican Environmental Law. Nevertheless, Mozambique's president at that time, Armando Guebuza, inaugurated the mining project days after a large protest where community members physically attacked Jindal officials.
The group is under investigation for its role in the "Coalgate" scandal. Jindal has been accused of bribing the then Minister of State for Coal to secure mining rights in certain coal blocks. The Supreme Court, on August 25, 2014 ruled that coal blocks allocated by the government between 1993 and 2010 were illegal. Naveen Jindal, the head of the company, is also being investigated on charges of corruption, as part of the coal scam case. JSPL has also been accused of illegally diverting coal from its captive mines for commercial sale.
Court orders trial of UPA Minister Rao, ex-CM Koda, Jindal in coal block case
Stating that "facts and circumstances" brought on record prima facie "establishes the hatching of a criminal conspiracy after careful calculation and minute planning", a Delhi special court ordered former Minister of State for Coal Dasari Narayan Rao, former Congress MP and industrialist Naveen Jindal, former Jharkhand Chief Minister Madhu Koda and 12 others to be put on trial. They face charges of criminal breach of trust and criminal conspiracy in a 2008 allocation of a coal block in Jharkhand (source: The Indian Express).
Payment failure: Crisil cuts JSPL rating to "default"
Three weeks after it slashed the credit rating of Jindal Steel and Power (JSPL) to below investment grade, Crisil (Standard & Poor's Indian credit rating agency) has downgraded the firm to "default" grade (source: Crisil).