Jindal Group enters into $200 billion deal with Japanese company
Two Jindal Group companies; JSW Steel and JSW Energy have signed a 10-year deal worth more than $ 200 billion with a Japanese shipping firm for sea transportation of coal.
By PTI |
NEW DELHI: Two Jindal Group companies; JSW Steel and JSW Energy have signed a 10-year deal worth more than $ 200 billion with a Japanese shipping firm for sea transportation of coal.
The two firms have entered into contracts with Tokyo-based Kawasaki Kisen Kaisha Ltd to transport coking coal and steaming coal to them.
"An en bloc deal of 10 consecutive voyage charter (CVC) contracts, duration of which are for 10-year each, was concluded and signed with JSW Steel Limited and JSW Energy Limited," Kawasaki Kisen Kaisha said in a statement issued in Tokyo on Monday.
Coal would be transported to the two companies by 10 vessels and the freight revenue from the 10 vessels is expected to be over $ 200 crore per year, it added.
"The total transport volume for the two companies under the en bloc deal could reach around 12 million tonnes per annum by 2015, when all the vessels enter the service," the statement said.
The Japanese company also known as K-Line would be transporting coal to India from Australian, Indonesian, South African and Chinese ports.
According to the statement, Sajjan Jindal-led JSW Steel is set to expand the existing steel mill in Vijayanagar and to build two additional steel mills in Jharkhand and West Bengal and poised to be the largest steel maker in India.
JSW Energy, a power generation company belongs to the same group, also has aggressive plans to expand the generation capacity to 15,000MW (including coal thermal plants and hydro-power plants) by 2015, it added.
The two firms have entered into contracts with Tokyo-based Kawasaki Kisen Kaisha Ltd to transport coking coal and steaming coal to them.
"An en bloc deal of 10 consecutive voyage charter (CVC) contracts, duration of which are for 10-year each, was concluded and signed with JSW Steel Limited and JSW Energy Limited," Kawasaki Kisen Kaisha said in a statement issued in Tokyo on Monday.
Coal would be transported to the two companies by 10 vessels and the freight revenue from the 10 vessels is expected to be over $ 200 crore per year, it added.
"The total transport volume for the two companies under the en bloc deal could reach around 12 million tonnes per annum by 2015, when all the vessels enter the service," the statement said.
The Japanese company also known as K-Line would be transporting coal to India from Australian, Indonesian, South African and Chinese ports.
ADVERTISEMENT
According to the statement, Sajjan Jindal-led JSW Steel is set to expand the existing steel mill in Vijayanagar and to build two additional steel mills in Jharkhand and West Bengal and poised to be the largest steel maker in India.
JSW Energy, a power generation company belongs to the same group, also has aggressive plans to expand the generation capacity to 15,000MW (including coal thermal plants and hydro-power plants) by 2015, it added.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
