Jindal Steel and Power (JSPL), a part of the $1 billion O P Jindal group, has firmed up its plan to set up a power project in Chattisgarh.
The company has signed a memorandum of understanding (MoU) with the Chattisgarh government for a 1000 megawatt project to come up near Raigarh, according to V Gujral, vice-chairman and chief executive officer.
"We have signed the MoU to invest Rs 5,000 crore over the next five years in Chattisgarh. The proposed power project is part of that. In fact, we will invest close to Rs 6,000 crore there," Gujral said.
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"The plant will be coal-based and close to Raigarh. The land has been identified. We have also received environmental clearances for the project," said Gujral.
The company is currently setting up a 55mw coal-based plant in Chattisgarh at an estimated Rs 200 crore, Gujral said. JSPL has one 150 mw captive plant which supplies power to the Chattisgarh State Electricity Board after meeting the requirements of the steel plant.
Another project being implemented by JSPL is a mini-blast furnace, estimated at Rs 100 crore. The plant, to be commissioned by March 2002, will have an installed capacity of 250,000 tonne.
As a downstream project of the blast furnace, a 750,000 tonne per annum capacity rail and universal beam rolling mill was being installed for Rs 450 crore. Gujral said the mill was expected to commence operations within this calendar year.
"There would be good demand of large and medium parallel flange beams and columns, rail road rails and Larsen-type sheet piles of trapezoidal shape as government spending on infrastructure is on the rise. We hope to get good business from Indian Railways which would be required to replace rails on a large number of railway routes," Gujral said.
The company has made a presentation to the chairman of Railway Board on the efficacy of using very long rails (120 meter) to avert accidents. "It has been found that welding of short rails leads to worsening of railway tracks," sources said.
In 2000-1, JSPL recorded a turnover of Rs 570.16 crore with net profit of Rs 101.25 crore. For the half year ending September 30, 2001-2, it recorded a turnover of Rs 284.87 crore and net profit of Rs 51.75 crore.