The global economic upheaval is bound to pave the way for better and stronger socio-economic institution. The emerging economies can draw important lessons from the Euro crisis. The most important lesson would be that no economic bloc can grow sustainably without the foundation of a strong institutional framework and legislations, which bind the countries together as one unified whole. The process of drafting and implementing reforms becomes cumbersome in the absence of a general consensus, as in the case of Europe. Economic growth in the US is also not encouraging, but unlike Europe it has no problems of integration among states. Eurozone today reflects several warring factions, vying for attention. As a result, USA's return to economic stability and sustainable growth is expected to be much faster than that of Europe. India's economic growth still does not reflect the participation of its 1.2 billion people. The need of the hour is to lay more emphasis on reforms "to revive the animal spirit in the country's economy" as the Prime Minister has rightly pointed out. The infrastructure sector needs additional support from all quarters to accelerate growth and uplift millions of people from poverty and ignorance and provide them with better housing, education, livelihood and healthcare. Encouragingly, the 12th Five-Year Plan (2012-2017) has envisaged an investment of over Rs. 50 lakh crores in the infrastructure sector, half of which will come from the private sector.
Steel plays an important role in infrastructure creation and its consumption is a reliable index to measure economic development and social well being. India is the fifth largest global steel producer and is well positioned to become the second largest producer in the near future. The steel industry in India holds considerable optimism, despite the global economic slowdown. This optimism has an important basis. The industry does not rely heavily on exports to the developed world. India's enormous domestic market can support its growth. The domestic steel consumption in the infrastructure and consumer durables sector is likely to see an upward trend. JSPL is committed to play an active role in India's steel industry.
Notwithstanding challenges, we performed commendably in 2011-12. Our total income grew 39% from Rs. 13,194 crore in 2010-11 to Rs 18,351 crore in 2011-12, thanks to enhanced scale, increased demand and escalating realsations. Our operational profit increased 8% from Rs. 6,398 crore in 2010-11 to Rs. 6,935 crore in 2011-12. Our net profit increased 5% from Rs. 3,804 crore in 2010-11 to Rs. 4,002 crore in 2011-12 and cash profi t surged 9% from Rs. 5,115 crore in 2010-11 to Rs. 5,575 crore in 2011-12.
We are consistently growing our steel making capacity to achieve the target of 18 MTPA steel capacity by the year 2020. Therefore, our steel production capacity is being enhanced by setting up steel plants in Angul (Odisha) and Patratu (Jharkhand). We have also increased our current steelmaking capacity at Raigarh (Chhattisgarh) and are in the process to take it to 10 MTPA. Our Shadeed Iron & Steel Co. LLC, Oman is operating 1.5 MTPA hot briquetted iron plant at Sohar in Oman and we plan to set up the 2 MTPA steelmaking facility.
We have signed an MoU with the Government of Odisha to set up a downstream Industrial Park for the development and industrialisation of Angul in Odisha; leveraging our large steel and power manufacturing capacity along with the Coal Gasification plant and 80,000 barrel per day CTL project. This park will provide a unique opportunity to the entrepreneurs of Odisha to set up industrial units at a faster rate. Moreover, there will be a focus on select target recovery based industries and other medium and small-scale downstream units, which would both add value and increase industrial activity. With an investment commitment of Rs. 500 crore, the park will create direct and indirect employment for over 32,000 people. Total investment by prospective entrepreneurs in the park is expected to be over Rs. 5,000 crore. This park is expected to become operational by the end of 2014.
It has always been our endeavour to inculcate the best practices from across the globe. We signed an MoU with the Australian mining major, Rio Tinto to jointly work towards global commercialisation of the Hismelt (high-intensity smelting) technology to be used in a fully integrated steel making facility. We will be introducing the Hismelt technology for the first time in the world other than a pilot plant commissioned in Australia.
We are looking for acquisition opportunities of iron ore and coal mines in Australia and Africa to secure raw material sources.
Our performance in 2011-12 is once again due to the efforts of our exceptional team of talented and highly motivated professionals. We also think that it takes a value-driven culture to bring out the potential of our people. Our people are taking responsibility for their actions; making decisions in the best interests of the Company; and executing with focus, excellence and integrity.
JSPL's business priorities have never overshadowed its community efforts. In fact, we have always looked upon our business as an enabling force for social advancement. JSPL's CSR programmes focus on education, health and family welfare, agriculture, animal husbandry, water resource management, infrastructure development, on-farm and off -farm livelihood enhancement, capacity building and women empowerment. Moreover, we are uplifting underprivileged communities and supporting locals to develop professional skills and earn a better livelihood. The O.P. Jindal Community College marks the fulfilment of Shri O.P. Jindal's vision to educate and train a skilled workforce, who can deliver products and services of global standards.
At JSPL, all business decisions are guided by sensitivity towards the environment and an emphasis on social welfare, with the participation of employees, contractors, customers, communities and all other stakeholders. We are enhancing our focus more on the use of green technologies to reduce our carbon footprint and optimise the use of natural resources.
I thank our Board of Directors, employees, business associates, shareholders and the wider community of stakeholders for making JSPL's value leadership an inspiration for the world.