Jindal Group enters $2 bn deal with Japanese shipping firm

Jindal Group enters $2 bn deal with Japanese shipping firm
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First Published: Mon, Mar 17 2008. 04 25 PM IST
Updated: Mon, Mar 17 2008. 04 25 PM IST
PTI
New Delhi: Two Jindal Group companies, JSW Steel and JSW Energy have signed a 10-year deal worth more than $2 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 today.
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 million 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.
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First Published: Mon, Mar 17 2008. 04 25 PM IST
More Topics: Jindal group | Japanese | Shipping | coal | JSW Steel |