JSW in power chase with Rs 11.5k crore
The Sajjan Jindal-controlled JSW Group has become the latest entrant into the power sector bandwagon.
By Prince Mathews Thomas and Nevin John, TNN |
MUMBAI: The Sajjan Jindal-controlled JSW Group has become the latest entrant into the power sector bandwagon. Group company, JSW Energy (JSWEL) will invest about Rs 11,500 crore to set up thermal power plants of 2,800 MW capacity in three states.
The company plans to float three special purpose vehicles (SPVs) for the mega power projects. According to company sources, JSWEL has decided upon locations in Karnataka, Maharashtra and Rajashtan for the projects. The plants are expected to come up in three years.
At present, JSWEL has two units of 130 MW each operating in Karnataka . The gas-based units supply power to Karnataka Power Transmission Corporation and to Tata Power’s Mumbai system. Its subsidiary JSW Power Trading has the licence to buy and sell energy.
As part of the project, the company has applied for coal mines in the country and is also scouting for thermal coal in Indonesia. “A team of experts from the company has visited Indonesia and is looking at various possible sites,” said Seshagiri Rao, director, finance, JSW Steel.
The latest move comes after the group’s restructuring saw JSW Steel selling its 50% stake in JSWEL to Samarth Holdings, a holding company promoted by Sajjan Jindal. The remaining share is held by the OP Jindal Group companies. The Rs 513 crore-deal was supposed to create a separate power company, after JSW Steel decided to come out of non-core businesses. However, Mr Rao pointed out that JSW Steel may source about 300 MW of power from JSWEL’s upcoming project in Karnataka. “The power will be needed as we expand capacities in our Karnataka steel plant to 7m tonne and later to 10m tonne per annum,” he said.
JSWEL was formed as Jindal Tractebel Power Company in 1994 as a JV between the group and Tractebel of Belgium. Tractebel later sold its shares to ICICI, IDBI and Jindal Group companies. Consequently, the Jindal Group completely tookover the reins of the company.
The company plans to float three special purpose vehicles (SPVs) for the mega power projects. According to company sources, JSWEL has decided upon locations in Karnataka, Maharashtra and Rajashtan for the projects. The plants are expected to come up in three years.
At present, JSWEL has two units of 130 MW each operating in Karnataka . The gas-based units supply power to Karnataka Power Transmission Corporation and to Tata Power’s Mumbai system. Its subsidiary JSW Power Trading has the licence to buy and sell energy.
As part of the project, the company has applied for coal mines in the country and is also scouting for thermal coal in Indonesia. “A team of experts from the company has visited Indonesia and is looking at various possible sites,” said Seshagiri Rao, director, finance, JSW Steel.
The latest move comes after the group’s restructuring saw JSW Steel selling its 50% stake in JSWEL to Samarth Holdings, a holding company promoted by Sajjan Jindal. The remaining share is held by the OP Jindal Group companies. The Rs 513 crore-deal was supposed to create a separate power company, after JSW Steel decided to come out of non-core businesses. However, Mr Rao pointed out that JSW Steel may source about 300 MW of power from JSWEL’s upcoming project in Karnataka. “The power will be needed as we expand capacities in our Karnataka steel plant to 7m tonne and later to 10m tonne per annum,” he said.
JSWEL was formed as Jindal Tractebel Power Company in 1994 as a JV between the group and Tractebel of Belgium. Tractebel later sold its shares to ICICI, IDBI and Jindal Group companies. Consequently, the Jindal Group completely tookover the reins of the company.
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