JSW Energy to invest Rs 8k cr in two projects

The JSW group-promoted JSW Energy is planning to invest Rs 8,000 crore to build two thermal power projects of a combined capacity of over 2,000 megawatts in Chhattisgarh and Orissa in the current fiscal year, a senior executive said. "These projects would use coal from the existing reserves in the area, as they are pithead projects," JSW group chairman Sajjan Jindal told ET. The group is looking for coal mines in Chhattisgarh and Orissa and is in talks with the respective governments, he added. "We've already signed a memorandum of understanding (MoU) with the Chhattisgarh government and are in the process of acquiring land for the proposed project of 2X660 MW unit, in Orissa, we would be proceeding post election." The financial closure for these projects would be completed by the end of the current fiscal year, along with the group's other projects in West Bengal and Jharkhand, where land acquisition has been completed, said Mr Jindal. The debt-equity ratio for the projects will be 3:1 and the funds may be lined up with a consortium of domestic banks led by SBI. JSW Energy has also entered into tie-ups with China's Shanghai Electric and Dong Fang of Korea to supply power equipment for the power plants. The group has plans to build thermal power projects across the country and a hydro power project in Himachal Pradesh. For these projects, the group had envisaged investment of about Rs 16,500 crore in the previous fiscal year. JSW projects at various places, excluding those in Rajasthan and Karnataka, were delayed by one year, as the group had put on hold its expansion plans due to the global financial crisis. JSW Energy was planning to raise about Rs 4,000 crore through an initial public offer last year. However, its power projects in Maharashtra, Karnataka and Rajasthan will be fully commissioned by 2010. The combined capacity of these three projects is 3,600 MW. SS Rao, joint managing director of JSW Energy, said: "Last month, our two units at Vijayanagar, each of 135 MW, have already started operation. Another unit of 300 MW along with first unit of 8X135 at Barmer will start in July."