Jindal Steel Q1 net profit at Rs 316 million

Mumbai: Jindal Steel and Power Ltd (JSPL) has posted a net profit of Rs 315.90 million for the quarter ended 30 June 2002 as compared to Rs 255.60 million for the quarter ended 30 June 2001.

The total income has increased from Rs 1,309.40 million in the quarter ended 30 June 2001 to Rs 1,794.40 million in the quarter ended 30 June 2002.

We have chalked out a Rs 3,600-crore plan to establish a green-field integrated sponge iron and steel plant in Orissa, says JSPL executive vice-chairman and managing director Navin Jindal. JSPL proposes to establish a 20-million-tonne sponge iron plant and a 1-million-tonne steel plant.

Says JSPL vice-president (corporate finance) Sushil Maroo: We will invest Rs 1,000 crore in the first phase to set up a 1-million-tonne sponge iron plant over a period of three years. The second phase will see the addition of another 1-million-tonne of sponge iron capacity at a cost of Rs 1,500 crore. The steel plant will be set up during the third phase involving an investment of Rs 1,100 crore. JSPL will complete the entire project in a span of 10 years. JSPL has also drawn up plans to get into diamond exploration and has been approached by international mining giants de Beers and BHP for a possible joint venture. We intend to undertake survey and exploration for diamond mining in Chhattisgarh, says Jindal.

Jindal says his group has filed an application with the state government seeking prospecting rights for two blocks. The company plans to spend Rs 50-60 crore in a phased manner for establishing the reserve position, before making any commitments towards production of the precious stone.