JSPL to enter power trading

To apply for licence with CERC

Jindal Steel and Power, a part of $2.3 billion Jindal group, has announced that it would enter the power trading business as the company would have an access to over 1,250 mw electricity by 2008.

"We shall soon apply for power trading licence with the Central Electricity Regulatory Commission (CERC). We have an existing capacity of 205 mw which will go up to 255 mw by end of December this year," Sushil Maroo, vice president (finance) of JSPL told PTI.

Jindal Power Ltd, in which JSPL would be a majority stake holder, is setting up 1000 mw (2x500 mw) power plant in Chattisgarh thereby giving an access to JSPL to 1255 mw of electricity by 2008.

The first unit of 500 mw would be completed by 2007 and the second by 2008, Maroo said adding that JSPL is already in the business of selling power to Chattisgarh State Electricity Board and some other private entities.

Maroo revealed that Jindal Power Ltd has agreed to give 350 mw power to JSPL at Rs 2.10 per unit for a period of 12 years beginning 2007. "This would ensure affordable tariffs for the electricity to the State Electricity Board as well as other players," he added.

The company is also targeting to double the turnover to Rs 2,000 crore by the end of 2005-06 from Rs 1,000 crore for the last financial year. There will be a major increase in turnover and profits with the early completion of the proposed projects in power and sponge iron ahead of schedule.

Currently, JSPL uses about 100 mw for its captive consumption in the sponge iron making while selling rest to the state electricity board and other users. Company said that it has signed a MoU with the state government and the preliminary work on 1000 mw has already begun. JSPL is also negotiating with various equipment suppliers including BHEL.