Jindal Steel and Power Ltd (JSPL), the flagship of the Rs 6,000-crore O P Jindal group, has signed a memorandum of understanding (MoU) with the Chattisgarh government to invest Rs 6,400 crore in various projects in the state over the next seven years.
Besides JSPL, another private steel company, Monnet Ispat Ltd (MIL), has also signed an MoU with the Chattisgarh government for investing Rs 1,200 crore in order to set up a captive power plant and steel making facilities in Raipur and Raigarh.
JSPL is setting up a 1,000 mw thermal power plant at Raigarh at an estimated cost of about Rs 4,500 crore. The company today signed a power purchase and wheeling agreement with the Chattisgarh government and the state electricity board (SEB) for the two-phase project, which has been cleared by the Central Electricity Authority (CEA).
More From This Section
According to Naveen Jindal, vice-president and managing director, JSPL, in the first phase, the company will set up a 550 mw power plant, while another 450 mw power plant will be added in the second phase.
Besides the 1000 mw power plant, JSPL will invest another Rs 1,900 crore in various other steel projects. For instance, the company will invest Rs 450 crore in a 7.5 lakh tonne rail and universal beam mill and Rs 400 crore in a 50,000 tonne aluminium plant, Jindal informed. JSPL will also set up a 110 mw power plant at the cost of Rs 400 crore and a 7.5 lakh tonne steel melting shop at the cost of Rs 150 crore.
A ferro chrome plant with 60,000 tonne capacity will also be set up by JSPL at the cost of Rs 50 crore. Besides, the company will invest Rs 250 crore in a DRI plant (45,000 tonne capacity), Rs 100 crore in a 2.5 lakh tonne mini blast furnace, Rs 50 crore in a 2.5 million tonne coal washer and Rs 50 crore in the development of additional coal mines, Jindal added.
The 1000 mw power plant would supply power at about Rs 2.26 per unit after its completion by 2005, he said. Engineering and construction contracts for the power plants have been placed with ABB, while Larsen and Toubro would construct a dam on river Kurket for supplying water to the plant.
MIL would invest Rs 350 crore to enhance sponge iron capacity to three lakh tonne a year, a captive power generation plant of 55 mw and development of coal mine in Raigarh.