JSW Aluminium Limited has tied up the debt component of Rs 3,000 crore for its alumina refinery project coming up in Vizianagaram district of Andhra Pradesh, said JSW Energy Limited joint managing director and chief executive officer SS Rao.
The Rs 4,400-crore project will have a capacity of 1.4 million tonne per annum (mtpa). Speaking to the media here on Friday, he said the remaining Rs 1,400 crore would be the equity portion.
JSW Aluminium is a part of the JSW Group, which has interests in steel, energy, aluminium, infrastructure and cement businesses.
The state has allotted 1,100 acre for the project. “A major portion of the land has been acquired and the project has also received special economic zone status,” said Rao.
The company will soon sign an agreement with the Andhra Pradesh Mineral Development Corporation Limited for supply of bauxite. “The project implementation will gain momentum once the bauxite supply agreement is signed,” he said. While the environment and forests ministry has given its clearance, the nod for mines was awaited.
Another group company, JSW Cement Limited, is setting up a 3.1-mtpa cement plant at Nandyal in the state and a 2.1-mtpa plant in Karnataka. The plants are being set up at an estimated cost of Rs 2,000 crore of which the debt portion of Rs 1,450 crore has already been tied up.
Rao said JSW Energy Limited, which generates 995 Mw power, was looking to increase its capacity to 3,140 Mw in Phase I by April 2011 and to 11,390 Mw by September 2015.
For this, the company plans to set up power plants in Karnataka, Rajasthan, Maharashtra, Himachal Pradesh, West Bengal, Jharkhand and Chhattisgarh at an estimated cost of Rs 54,000 crore. Phase I will see an investment of Rs 17,000 crore. “Of the Rs 17,000 crore, Rs 4,800 crore is equity. We have already invested Rs 2,866 crore and the remaining Rs 2,134 crore will be infused from the proceeds of an initial public offering,” he said. The company has filed the draft red herring prospectus to enter the capital market.