Now JSW comes out with its reponse on Lokayukta Report

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Friday, August 5, 2011, 15:38 [IST]

Now JSW Steel came out with response to the allegations placed in by the Lokayukta report. The company's executives held a press conference and denied all charges drawn by Lokayukta report against JSW Steel on procurement, transportation of iron ore in Karnataka, and transactions linking the company.

Currently the company is not considering any legal action but it may do so in future. The steelmaker is not looking at legal recourse on the issue for now but may do so in future said Seshagiri Rao, joint managing director and group CFO, told a press conference.

On behalf of the company, the Rao clarified the details on each of the issue.

Procurement of Iron ore

JSW Steel procures iron ore from NMDC, MML, VMPL, and other mining companies. All the purchase is done while taking care of valid purchase order and requisite documets were maintained.

The company maintains all accounts of iron ore which is received by the company and its usage. As negotiated with the sellers and suppliers of iron ore the sale consideration as paid by JSW Steel was inclusive of all applicable taxes and royalties. The sellers and suppliers are responsible to discharge their statutory obligations.

Movement of Iron ore

The report says that transportation of iron ore from the stock yard located near JSW Steel premises to Auto Nagar and Baba Plant. The company however clarifies this stock yard is neither owned by JSW nor controlled by the company.

Non-adherence of agreement between Mysore Mineral

Vijay Nagar is a joint venture (JV) between JSW Steel Ltd and MML. And all activities of at this JV is governed according to the MOU dated January 17, 1997.

Collateral benefits in obtaining mining agreements

JSW even stated that the company is still waiting for mining lease even though it has made massive investment in Karnataka, which is to the tune of Rs 33,500 crore to set up a steel plant. JSW also said that it has not been given any mining lease in the last 15 years.

JSW Steel does not have any allocation of mining concession even after several years of substantial investment conjuncture of collateral benefit to JSW Steel is mere speculation.

GoodReturns.in