Company wants to replace thermal energy with renewables and cut carbon emission 40% by 2030.
JSW Steel plans to raise $500 million (₹3,700 crore) through the issue of sustainability bonds in the overseas markets.
The company has set a target to become carbon neutral at JSW Coated and reduce carbon emission 40 per cent by 2030, besides recycling all the solid waste generated and achieve zero discharge from the plant.
The company also plans to progressively replace thermal energy with renewable power to reduce its carbon footprint.
Seshagiri Rao, Joint Managing Director, JSW Steel, told BusinessLine that the company will utilise the fund raised through sustainable bonds for green initiatives including the generation of wind and solar power.
In this regard, JSW Steel will be investing ₹445 crore to pick up a 26 per cent stake in the subsidiary of JSW Energy which will be setting up 1 GW of solar and wind power project in various locations where steel plants are located.
The investment of ₹450 crore in JSW Energy subsidiaries will not only bring down power cost by ₹1.30 a unit, but also meet green energy sourcing, he added.
The government has mandated all companies using thermal power to source 21 per cent of their total power requirement from renewable sources by 2030.
If companies are not compliant, they have to buy renewable energy certificates from the market.
Industrial paints
Justifying the recent ₹750 crore investment in promoters-owned group company JSW Paints, Rao said JSW Steel demand for industrial paint has risen over four times to 60,000 kilo litres in last few years but the supply in market was sufficient.
The industry was not expanding capacity as industrial paint is a low-margin business and the growth outlook is less compared to decorative paints, he said.
Even when JSW Paints was set up it had 1.25 kilo litres but of this only 25,000 kilo litres constitutedindustrial paints.
Moreover, JSW Steel was able to meet the 10-15 years of guarantee for the colour coated products because of the back-to-back arrangements with JSW Paints which has also set up a R&D centre at the Vasind steel plant to develop anti-dust and antimicrobial type paints, he said.
Courtesy: https://www.thehindubusinessline.com/companies/jsw-steel-to-raise-3700-cr-via-green-bonds/article35522843.ece