JSW to set up 3 power plants

JSW Energy Ltd (JSWEL), a Sajjan Jindal group company, is planning to set up three power plants in North and Eastern India. The company also plans to foray into non-renewable energy and transmission and distribution of power.

JSW Energy, which is executing over 3000 MW of power projects, is likely to set up either coal or lignite based power plants of above 1000 MW each in Orissa, Jharkhand and West Bengal. It is also in the process of conducting due diligence studies on wind and solar energy-based power projects. Investments in the new projects are expected to be over Rs 15,000 crore.

"We are actively pursuing new growth opportunities and are assessing various options. The new projects depend on the availability of fuel, land in the region and the progress on discussions with state governments," Pramod Menon, chief financial officer of JSW Energy, said.

He said the vision of the company was to become an end-to-end player in the power business, including transmission and distribution. "T&D plans are at a very nascent stage," he said.

Raj West Power Ltd (RWPL), a subsidiary of JSW Energy, is executing a 1000 MW lignite based power plant at Barmer in Rajasthan and has already achieved financial closure. An ICICI Bank-led consortium comprising 12 banks and financial institutions will give Rs 3750 crore loan for the Rs 5000 crore project.

Menon said eight units of 335 MW would be set up at Barmer. The first unit will be ready to start power generation in the last quarter of 2008 and the whole project is expected to take off by 2010-11. Another subsidiary, JSW Energy (Ratnagiri) Ltd, (JSWERL) is executing a 1200 MW coal fired power plant at Jaigad, in the Ratnagiri district of Maharashtra. This project is expected to take off by the last quarter of 2009.

JSW Energy (Vijayanagar) Ltd, (JSWEVL) is also executing a 2 X 300 MW power plant at Toranagallu near Bellary. The company is awaiting various clearances to set up a 1000 MW power plant in the Junegarh district in Gujarat. JSW Energy has also been awarded a hydro-electric project in Himachal Pradesh, said Menon.

The Rs 820 crore (2006-07) JSW Energy has a 260 mw (2X130 MW) power plant at Toranagallu near Bellary in Karnataka.