ccdirector & group CFO of JSPL said that a number of companies are coming out with initial public offers but, JSPL at the moment does not have any plans to list Jindal Power in the near term. He added that they have provided all the requisite information regarding their mining operations to the government authorities.
Mr Maroo said that "The government has asked us for certain clarifications. We have provided all the necessary information to them. It includes whatever they had asked for regarding approvals, sanctions, production plans and production done in the past and payments made to the government."
He also expects domestic steel prices to remain stable in the near term.
Here is the edited transcript of the interview on CNBC-TV18.
Q - Before anything else, as you may have noticed the primary market has really livened up, can you just update us on what your plans are for Jindal Power and whether you would be interested in hitting the market with that issue?
A - Yes you are right. The primary market is up and many companies are planning for initial public offer. But, as far as Jindal Power is concerned, we have not thought about it so far. The management has to take a view, probably it will be discussed in the board meeting and a view will be taken. There is no plan right now to take out any IPO.
Q - Can you update us on where things stand after the observations that came in from the Supreme Court both in terms of Karnataka and the mining ban there and in Goa now. For JSPL itself how have mining operations gone through these last few months?
A - Our company has an iron ore captive mine in Orissa and we are also buying iron ore from other companies. But, we have no problem as such and our mine is doing pretty well. All the rules and regulations are completely followed, the environment laws are followed, all necessary approvals have been taken from the authorities well in time and all the government committees have examined our recourses. They have also visited our mines and the mines are operating. We don’t see any kind of problem in the iron ore mining operations and in the plant also.
Q - Some observations have been asked for from JSPL from the Shah Commission. On that accord has communication begun, can you update us on that?
A - Normally, whenever any committee does any kind of record checking there will always be some points where they ask for clarifications, where they ask for detailed information and reasons for everything done. All those reasons and clarifications are normally given and it happens almost in all the cases.
The government has asked us for certain clarifications. We have provided all the necessary information to them. It includes whatever they had asked for regarding approvals, sanctions, production plans and production done in the past and payments made to the government. All necessary information has been given to them already.
Q - In terms of a steel price outlook for next year, you raised prices early in December, any plans for further hikes?
A - I don't think steel prices are going to go up from here. The demand is quite steady. Specifically, the long products demand is quite steady. In fact, many smaller steel plants are not operating well. So, the supply side of the steel is also less in the country and demand is quite steady.
I feel that the prices would remain steady and besides, we feel that there is expectation of Reserve Bank of India (RBI) reducing interest rates going forward and the liquidity pressure should be less. The companies are planning to start their projects again. I think the demand should be higher and prices will remain steady. In fact, we are now witnessing liquidation in our inventory build up which was quite high in the last quarter.
Source:
http://www.steelguru.com/indian_news/Mr_Sushil_Maroo_says_no_plans_to_list_Jindal_Power_in_near_term/294942.html
