After successfully commissioning India's largest blast furnace at Angul steel plant in Odisha, Naveen Jindal, Chairman of Jindal Steel & Power limited (JSPl) tells Madhusudan Sahoo in an exclusive interview about the steel's supply-demand balances on domestic equations, global dynamics, steel pricing, GST impact, turnaround of JSPl and its future plans. Excerpts:

 Who are the prospective buyers of Angul produceIJ Do you sell them in a competitive price, which is better than your rivals like Tata’s & othersIJ

In today’s hyper-competitive world, where supply-demand balances are not only dependent on domestic equations but also prone to global dynamics, market forces drive right pricing of each product category. What becomes paramount is to be the most cost-efficient producer in each of the category of steel we produce. That is the primary focus integral to the operational excellence philosophy practiced at JSPl. The steel price per tonne of the diverse range of steel produce at Angul plant differs substantially.

The Bar Mill caters to the robust demand for the Jindal Panther TMT Rebar range. The Plate Mill at Angul has capability to produce plates upto 5-metre width. The plates produced at Angul are being used globally in critical applications like oil & gas pipelines, shipbuilding, pressure vessels and a plethora of industrial applications, where longevity and durability over decades of useful life is paramount.

 As the company was in talks with few players to sell assets, are you still mulling any plan to sell stakes in Indian operations to cut debtIJ Is there any plan to sell stake in your Oman unitIJ

JSPl is in the business of selling steel, not steel plants. We are open to looking at equity investors partnering in the growth of JSPl at a fair value. We do keep getting inquiries from multiple players for our worldclass assets on a regular basis. We value our assets and we will continue to nurture them with the same dedication and commitment we have built them over the years.

 When do you expect the deal with JSW for your power plants be done finallyIJ Is it not taking too much of timeIJ What are the issues involved in this regardIJ

The deal with JSW Energy for sale of a 1,000-MW power generation asset at Tamnar is progressing at the desired pace. We aim to consummate the agreement within the given time frame in 2018.

 What is your view on the current GST regimeIJ

GST is a progressive step that would strengthen the economic fabric of India. The taxation on steel and power gets simplified and rationalized to a certain extent. Ultimately, a uniform GST regime is good for the country and good for JSPl as well.

 Will JSPl participate in the forthcoming growth of steel sector in line with the National Steel Policy (NSP) targets of 300 MTPA by 2030IJ

At this point of time JSPl has created substantial capacities that can cater to the emerging demand for ‘Made-in-India’ steel. We aim to swear these assets to the optimum levels before embarking on further expansion plans. Some of our unique product range like Head Hardened Rails, which till now are being imported, can effectively address the rapid creation of Metro and high-speed trains which are key emphasis areas identified by the Government. likewise, being the country’s only private sector producer of rails, we aim to participate in the exciting expansion plans of the Indian Railways. With a 1-MTPA of rail manufacturing capacity, JSPl can emerge as a reliable source of rail tracks in the country’s railroad plans.

Similarly, JSPl’s range of plates, beams and structural steel products can substitute the current imports substantially to contribute to the success of the ‘Make-in-India’ initiative. By 2030, we would aim to have a higher share of domestic steel production capacity than the levels at which we stand today.

lastly, could you please give quick comments on steel market going forward in IndiaIJ

India has a huge latent demand for steel for its infrastructure-creation roadmap. Today, the per capita consumption of steel in India stands around 60-kg as against the global average of 217-kg. We do not see any major issues — neither on the demand front nor on the supply aspects. The most important issue that India has to address is by bringing the duty, royalty and taxation regime for ores at par with global steel producing nations. likewise, some major steps need to be taken to reduce logistics costs and turnaround times.