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JSW Steel denies lokayukta charges

business Updated: Aug 04, 2011 22:35 IST
HT Correspondent
HT Correspondent
Hindustan Times
JSW Steel Ltd

Sajjan Jindal-led JSW Steel Ltd on Thursday denied the charges levelled against it by the Karnatake state lokayukta on procurement and transportation of iron ore in Bellary district.

“Whatever has been stated in the lokayukta report on JSW Steel is not correct and the company is no way connected to alleged illegal mining activities or default in payment of royalty or taxes by the mine owners to the state exchequer,” said Seshagiri Rao, joint managing director and group CFO on Thursday.

The Karnataka lokayukta in its report on July 27 had mentioned about certain instances of lapses on the part of JSW Steel in the iron ore mining-related issues in Bellary district. The report alleged that JSW Steel received excess iron ore to the tune of 1.29 million tonnes, causing a loss of R3,200 crore of revenue to the state.

“JSW Steel is appalled with the untenable conclusions drawn in the Lokayukta report based on speculative inferences and the company strongly refutes the allegations and affirms that it scrupulously follows all the applicable laws and regulations,” Rao said.

“The company has invested Rs 33,500 crore in its steel plant in Bellary district with 10 million tonnes of installed capacity, but it’ has been waiting for over 15 years to get a mining lease,” said Rao.

“We’ve to cut production in the steel plant by 30-35% due to shortage of iron ore and company having inventory for only three days,” Rao said.