The company plans to build a 1,080-mw, coal-fired captive power plant to fuel its 6-million tonne (mt), proposed Orissa steel plant, Sushil Maroo, wholetime director, JSPL, said. About 70-80 per cent equity worth over Rs 4,000 crore will be raised through debt and the company has already approached a consortium of banks, said an executive of JSPL.
The project is slated to take off simultaneously with the first phase of the Rs 13,500-crore steel plant by February 2011.
"Now, we have 330 mw of capacity up and running for our steel plants. In the near future, we will set up 550 mw for the upcoming steel plant in Chhattisgarh and 1080 mw in Orissa for captive usage," Maroo said.
The power plant will comprise eight 135-mw units. The first unit is slated for commissioning by 2009. Orders for the 135-mw units have been placed with Shanghai Electric Company of China. The project capacity may be raised to as much as 1,410 mw, with six 135-mw and two 300-mw units.
Efforts are on to firm up suppliers for the two 300-mw units, said another executive of the company.
Land acquisition is on and the ministry of environment has cleared the power project. A few weeks ago, JSPL had written to the ministry of coal to allocate long-term coal linkages for 4 mt of steel. The ministry has already given coal linkages for 2 mt of steel capacity by allocating coal blocks in Utkal, said government sources.
As announced earlier, the Rs 5,400-crore JSPL is also setting up a 6-mtpa steel plant and captive power plant in Patratu in the Hazaribagh district of Jharkhand. Jindal Power, a subsidiary of JSPL, is also setting up a 1,000-mw OP Jindal Super Thermal Power Plant near Tamnar in Raigarh district, Chhattisgarh. It has commissioned 500 mw of the project and the rest is expected to take off soon. JSPL also has plans to set up two power plants with a total production capacity of over 2,500-mw in Jharkhand.
