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News Round Up - Indian 44 November 2019 STEELWORLD I ndia 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 outlook back 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 T he 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.
