Steel-ing Away The Energy Blues India will no longer need to import crude oil if coal resources are judiciously and scientifically used: V.R. Sharma, managing director of Jindal Steel and Power Ltd (JSPL)

"If coal is judiciously and scientifically used through the coal gasification process, India can become self-reliant in energy resources and there will be no need to import," said V.R. Sharma, managing director of Jindal Steel and Power Limited (JSPL).

The statement comes at a time when a report said India's crude oil Import bill that fell drastically last year in the absence of demand and soft oil prices, has risen by over 138 per cent in April-August of FY22 to $42 billion, up from $18 billion the same period of last year.

JSPL is already using the coal gasification technology at its Angul plant in Odisha. "The coal gasification technology is aligned with India's aim to be free from carbon emission by 2070. The technology can be used to convert coal into syngas which can be used for producing power, petrol, diesel and other petroleum products, which can reduce dependence on crude oil. If this technology is adopted by other plants as well, we can save a lot of money and resources," said the MD.

When it comes to using resources to its full capacity the company always has plans up its sleeve. When India's economy was rocked by the unprecedented health crisis, COVID-19, JSPL was already exploring options to export its product. "We started using the available capacities right from the third quarter of 2019 and by the time COVID-19 rocked India, the team at Jindal Steel and Power Limited, was already exploring its export options. We started exporting our products to Africa, Europe, southeast Asian countries and the Middle East," said Sharma.

"When the entire world was struggling, we were working with the highest level of capacity utilization of 90 to 95 per cent. The key to success depends on how one utilises the capacities. This has played a significant role in turning around the company's growth as the economy of scale played really well," he added.

Talking about the company's current debt level, he said, "By July 2022 we aim to become a net debt free company."

JSPL has declared a capex of INR 18,000 crore in Angul in Odisha and a brown field capacity of around 6 million tonne, which should be over by 2023 to 2024. "These are our current expansion plans. The new products will start coming from March 2023."

Giving an insight into the rising steel prices he said steel is a commodity that is driven by input cost. "Once the input cost reduces the price will automatically fall."

With an eye on meeting the huge energy demand, the company is currently working on R&D to convert coal to hydrogen, hydrogen to power, methanol or fuel. "We are also working on installing more and more solar generation plants in the west coast of India. We aim to produce 500 Megawatt of solar energy immediately. With these adoptions in hand we are sure to meet our energy demands."

Founded in 1979, JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. It aims to innovate, set new standards, enhance capabilities and enrich lives.