JSW Energy Ltd, part of the Sajjan Jindal-promoted Jindal South West Group (JSW), has sought alternative land from the Gujarat government to shift its power project from Junagadh in the west to the port town of Dahej in south Gujarat.
JSW Energy had an agreement with the government to develop an imported coal-based power plant with a capacity of 1,400 Mw at Junagadh, involving an investment of Rs 7,000 crore.
“The company is now proposing to set up a 2,400 Mw power project at Dahej, with a 1,600 Mw power plant in the first phase and 800 Mw in the second phase. The company had plans to put up this capacity at Junagadh earlier,” said Krishna Deshika, joint group CFO.
The company has requested the state government to allocate land for the project in Dahej. Around 1,500 acres is required. It has also applied to ministry of coal for a long-term supply arrangement. The proposed project is likely to need investment of around Rs. 10,000 crore, as the norm is Rs 4-4.5 crore for generating every Mw of power.
On the site change, Deshika said Junagadh was identified for its proximity to the proposed Simar port, since the power plant was imported coal-based. The port was to be developed by the Shapoorji Pallonji Group. “However, the survey by the developer found development of a port at Simar was technically not feasible. Therefore, JSW Energy requested the government to allot alternative land.”
Currently, JSW Energy has an installed capacity of 995 Mw, which it plans to increase to 3,140 Mw by 2011 and 11,390 Mw by September 2015. “Power plants aggregating 3,650 Mw are under operation or at an advanced stage. These projects are coming up in Rajasthan, Maharashtra and Himachal Pradesh,” added V K Dhanuka, the company’s senior vice-president, energy projects.
In addition, proposals for four other power plants of 7,740 Mw are under development. These are for a 3,200 Mw one at Ratnagiri in Maharashtra, 1,600 Mw in West Bengal, 1,620 Mw in Jharkhand and 1,320 Mw in Chhattisgarh.
For projects in the construction and implementation stage, the company requires capital outlay of Rs 14,048 crore, of which Rs 9,979 crore will be raised through debt. For the remaining Rs 4,069 crore, the company intends to mop Rs 2,134 crore through a public issue.
