We Follow Good Corporate Governance Norms: Naveen Jindal, Chairman, Jindal Steel & Power

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INDIACSR News Network

NEW DELHI: Naveen Jindal, Member of Parliament and Chairman of Jindal Steel Power Ltd, a leading steel company said that they follow good corporate governance norms. In an interview with Business Standard Mr Jindal said, “we all wear different hats every day at different points of the day.”

“When I wear the hat of a chairman, I take decisions accordingly and in the best interest of our business. We follow good corporate governance norms. As an MP, I am dedicated to my constituency.” He added.

Mr Jindal said that if one is in politics, you are bound to be under public scrutiny and people like to target you. Which other industrialist has come into active politics and joined the Lok Sabha? If it made so much business sense, then more industrialists would have joined the Lok Sabha.

On  Zee News extortion issue he said that he will make every possible move legally to bring out the truth. “I believe news channel is get a licence for news and not extortion. Zee’s conduct has shamed most media houses. I was shocked at the way they have resorted to targeting us to extort money. They demanded Rs 100 crore, which is why they ran a malicious campaign. As a last resort, we took legal recourse by filing civil and criminal complaints. We will make every possible move legally to bring out the truth.” He said.

On the issue of high salary package, Mr Jindal said that, too much is being read into the salary package. It is petty minded to talk on others’ salaries. There are many instances where promoters are given much higher remuneration and commissions, up to five per cent of net profits. Our company has given only two per cent commission. The norms allow me to take up to five per cent of net profit as commission and I get only two. It is approved by the board and shareholders in the annual general meet. Everything is relative. The board will decide if it will be raised or reduced.

He defends his record and said that controversies created due to recent government audit reports are not in the nation’s best interest. He said that JSPL has strong fundamentals and these will not impact its image. JSPL has been awarded and recognised globally for performance, efficiency and shareholder value. We have various mega-steel/power projects under various stages of implementation in Odisha, Jharkhand and Chhattisgarh. The total investment planned on these is a little more than Rs 130,000 crore.

“We are on the right path. Image can be good one day and not so good the next. My conscience is important for me. I try to do the best job possible. My conscience is absolutely clear as a politician, an MP and an industrialist, by following the rules of the land.” Mr Jindal said.

He said on govt’s policy of allocation of captive blocks that the coal allocation policy the government is following since 1993 is the best in the world. Which other country expects you to invest billions of dollars in further value addition of coal? Countries like the US, Australia, Indonesia and Canada, which produce coal, do not put a condition that you have to invest downstream. All these countries are happy if you mine and pay royalty and income tax. We should be grateful to the government that you cannot sell coal but set up power, steel and cement plants or feed the existing plants, which means lots of investment generation and a lot more employment.

Mr. Jindal is not agreed with Comptroller and Auditor General of India figure of more than Rs 2-lakh-crore loss to the exchequer. He said, I do not agree with the figures of CAG. It is most unfortunate this kind of controversy has been created. It has not been in the best interest of the country.

If the government policy is challenged every time, and companies made the subject of criticism, they will wonder whether to invest. If the media resort to sensationalism, it does not help.

 ( With Business Standard input)

 

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