govt notifies steel scrap recycling policy: dharmendra...

News Round Up - Indian

44 November 2019STEELWORLD

India Ratings has affirmed JSW Steel’s long term

issuer rating at IND AA but the outlook has been

revised to Negative from Stable since the last rating

was issued in March. Citing an expected increase in

the steel major’s net debt-based leverage. It said

“JSW Steel’s adjusted net debt to Ebitda is expected

to rise to 3.5 - 3.7 times this financial year on the

India Ratings revises JSW Steel's outlookback of a decline in per tonne Ebitda and outflows on

account of debt-led capital expenditure. In FY19 and

FY18, the leverage was 2.2 times and 2.6 times

respectively.”

The rating agency expects outflows relating to any

inorganic stressed asset acquisition in FY20 to be

limited to INR 5,000 crore and primarily to be executed

through ring- fenced financial structures with only a

minority stake byJSW Steel. India Ratings also expects

JSW Steel’s FY20 liquidity to remain adequate with well-

planned debt refinancing amid substantial capital

expenditure outflows.

JSW has announced reduction in the budgeted

capital expenditure by about INR 4,700 crore to about

INR 11,000 in FY20 as a measure to conserve cash in

the background of benign economic situation. The

company has also deferred capex at its Baytown, Texas

facility by around USD 240 million of the announced USD

500 million.

Govt notifies steel scrap recycling policy: Dharmendra Pradhan

The government has

notified a Steel Scrap

Recycling Policy (SSRP) to

provide for a framework to

facilitate and promote

establishment of metal

scrapping centers in India for

scientific processing and

recycling.

Union Steel and Petroleum

Minister Dharmendra Pradhan

said in Lok Sabha that the policy

framework provides standard

guidelines for collection,

dismantling and shredding

activities in an organised, safe

and environmentally sound

manner.

"The Steel Scrap Recycling

Policy has been notified in the

Gazette of India vide No. 354

dated November 7, 2019. The

policy provides a framework to

facilitate and promote

establishment of metal scrapping

centers in India for scientific

processing and recycling of

ferrous scrap generated from

various sources and a variety of

products," he said during Question

Hour.

Pradhan said the policy

prescribes guidelines for setting

up and responsibilities of

dismantling centre and scrap

processing centre, roles of

aggregators and

responsibilities of the

government, manufacturer and

owner. "The Steel Scrap

Recycling Policy does not

envisage setting up of scrap

centres in the country by the

government. The role of

government is to provide a

framework to facilitate and

promote establishment of

metal scrapping centres in the

country," he said.

The minister said the

government has not fixed any

incentive on sale of scrap. This will

be governed by guidelines and

market conditions prevailing at the

time of sale of scrap.

The other ministries involved in

sanctioning of scrap centres are

Ministry of Road Transport and

Highways and Ministry of

Environment, Forest and Climate

Change, he said.