Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JINDAL STEEL & POWER
Environment clearance for Orissa plant
�� Environmental clearance granted; ministry softening its stand
The Ministry of Environment and Forest (MoEF) has granted the environmental
clearance for JSPL’s proposed 6 mtpa (phase-I is 1.6 mtpa) green-field steel at
Angul, Orissa. This is the third clearance in less than two weeks time that MoEF
has granted, the first being Posco’s greenfield plant (4 mtpa of the proposed 12
mtpa) and SAIL’s Chiria (iron ore) mines.
�� Clearance granted post show cause notices
The plant had been given an initial clearance in February 2007, with the
condition that no work commences until the final approval for forest land of
~168 hectares is obtained. However, we believe JSPL started work on certain
infrastructure related activities such as storage godown, stockyard plant mill as
well as the foundation of the proposed power plant. Considering this, MoEF
issued show cause notices to JSPL to cancel the initial environmental clearance,
as work started without approvals for clearance of forest land. However, post
dialogue with MoEF, the plant has finally been given the conditional ‘go-ahead’
for a 6 mtpa facility.
�� Precursor to MMRDA act? CSR taking front seat
While clearance has been granted for the green-field project, certain stipulations
have been added for the implementation of the said project. While most of the
conditions are environment and forest related, such as handing of fly ash,
ground water drawal and emission norms, the most important condition is to
earmark 2% of net profits for CSR activities in the vicinity of the project. The
same condition also prevails in Posco’s proposed green-field plant as well SAIL’s
project to develop the Chiria iron ore mines. We think that this is the pre-cursor
to regulations in the proposed MMRDA which in its latest draft envisages
applying a ‘mining tax’ of 26% of net profits for mining operations. Though we
believe there is not enough visibility on the final form of this provision and the
Act itself, earmarking a certain fixed percentage of net profits is a definite step in
that direction. Additionally, we also believe that a 2% CSR funding from net
profits is still acceptable compared with the humongous 26% mining tax
proposed in MMRDA. If implemented, we believe it will generally be negative for
the metals and mining industry, but not as much as anticipated earlier.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JINDAL STEEL & POWER
Environment clearance for Orissa plant
�� Environmental clearance granted; ministry softening its stand
The Ministry of Environment and Forest (MoEF) has granted the environmental
clearance for JSPL’s proposed 6 mtpa (phase-I is 1.6 mtpa) green-field steel at
Angul, Orissa. This is the third clearance in less than two weeks time that MoEF
has granted, the first being Posco’s greenfield plant (4 mtpa of the proposed 12
mtpa) and SAIL’s Chiria (iron ore) mines.
�� Clearance granted post show cause notices
The plant had been given an initial clearance in February 2007, with the
condition that no work commences until the final approval for forest land of
~168 hectares is obtained. However, we believe JSPL started work on certain
infrastructure related activities such as storage godown, stockyard plant mill as
well as the foundation of the proposed power plant. Considering this, MoEF
issued show cause notices to JSPL to cancel the initial environmental clearance,
as work started without approvals for clearance of forest land. However, post
dialogue with MoEF, the plant has finally been given the conditional ‘go-ahead’
for a 6 mtpa facility.
�� Precursor to MMRDA act? CSR taking front seat
While clearance has been granted for the green-field project, certain stipulations
have been added for the implementation of the said project. While most of the
conditions are environment and forest related, such as handing of fly ash,
ground water drawal and emission norms, the most important condition is to
earmark 2% of net profits for CSR activities in the vicinity of the project. The
same condition also prevails in Posco’s proposed green-field plant as well SAIL’s
project to develop the Chiria iron ore mines. We think that this is the pre-cursor
to regulations in the proposed MMRDA which in its latest draft envisages
applying a ‘mining tax’ of 26% of net profits for mining operations. Though we
believe there is not enough visibility on the final form of this provision and the
Act itself, earmarking a certain fixed percentage of net profits is a definite step in
that direction. Additionally, we also believe that a 2% CSR funding from net
profits is still acceptable compared with the humongous 26% mining tax
proposed in MMRDA. If implemented, we believe it will generally be negative for
the metals and mining industry, but not as much as anticipated earlier.
No comments:
Post a Comment