JSW Energy plans Rs40,000 crore investment in 8,000MW projects

The power producer is implementing projects worth 3,200MW in Maharashtra, 1,320MW in Chhattisgarh and 1,600MW in West Bengal and plans to become an over 11,000MW company by 2015

JSW Energy Ltd, the first company to be listed on the bourses in 2010, on Monday said that it plans to invest around Rs40,000 crore in developing power projects of 8,000MW, reports PTI.

"We have got 8,000 MW in the pipeline, so this money will be needed for that. The investment (for this) is close to Rs 40,000 crore," JSW's managing director Sajjan Jindal said today but he did not specify the duration for this investment.

The company is implementing projects worth 3,200MW in Maharashtra, 1,320MW in Chhattisgarh and 1,600MW in West Bengal. It plans to become an over 11,000MW company by 2015.

The power producer today listed shares on the Bombay Stock Exchange (BSE) where it opened at a premium of 2% over the issue price of Rs100. On the National Stock Exchange (NSE), the share was listed at Rs106, a premium of 6%.

JSW Energy, which raised about Rs2,700 crore through an initial public offer held last month, will utilise the issue proceeds to fund expansion, repay debt and for general corporate purposes, Mr Jindal said.

"Part of the issue proceeds will be used for expansion into new projects, part will be used for repaying debt and part of the proceeds is for general corporate purposes," he told reporters after the company's listing ceremony in Mumbai.

JSW Energy, which has an installed capacity of 995MW, is also setting up an 860MW plant at Vijayanagar in Karnataka and a 130MW plant at Barmer in Rajasthan. The company has 2,790MW capacity of projects under construction and implementation stage.

It will commission about 2,100MW of units by December 2010, including the 1,200MW plant at Ratnagiri in Maharashtra, Mr Jindal said.

He added that 55% of the power generated by the company would be sold commercially or on merchant basis, while the remaining 45% would be sold through long-term power purchase agreements (PPAs).

"For the next three to four years, India is going to have acute shortage of electricity. Therefore, we are more tilted towards merchant power. Over time, as India develops more power plants, we will shift towards long-term PPA-backed sales," Mr Jindal said.

Meanwhile, JSW Energy is also exploring opportunities in the power distribution sector to diversify the company's business.

The company is presently engaged in generation, transmission and trading of electricity and is eyeing electricity distribution in the western region, as it has power plants in the region.

JSW Energy plans to evacuate power from its generating stations through its transmission lines and further distribute it.
 

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