New Delhi: B C Jindal Group on Friday announced its foray into the power space with plans of investing over Rs 20,000 crore to produce 5,000 MW in the next five years.
The group’s Jindal India Thermal Power Ltd plans to implement three pit-head, coal-based power projects totalling 4,300 MW in Orissa, Madhya Pradesh and Chhattisgarh. The firm also proposes to venture into hydel power production with plans to establish a 1,000 MW project in North India at a cost of Rs 6,000 crore.
“We plan to set up 5,000 MW coal-based power plants with an investment of more than Rs 20,000 crore. We have signed MoUs with state governments of Orissa and Chhattisgarh for establishing plants there, while an MoU with Madhya Pradesh government is scheduled to be signed tomorrow,” said Puneet Gupta, the company’s director.
The funding for the projects would be done in a debt equity ratio of 80:20. Jindal India Thermal Power has appointed SBI Capital Markets Ltd for syndication of loans for the projects.
The company plans to set up a 2,000 MW power project in Madhya Pradesh. The plant, to come up near Sasan ultra mega power project being implemented by Reliance Power in Sidhi district, will entail an investment of over Rs 8,000 crore.
“The 1,200 MW plant in Orissa is in advanced stage of implementation. We have received the fuel linkage for producing close to 80-85 per cent of the planned capacity. Land acquisition is expected to be complete by April-end. Water commitments and other statutory clearances are also expected to come by mid-May,” Gupta said.
The company expects to start work on project in Orissa by the end of May, by when statutory clearances are likely to be obtained. The project is expected to become operational by September 2010.
Gupta said a 1,100-MW project is planned in Chhattisgarh. The plants in Chhattisgarh and Madhya Pradesh will be commissioned by December 2011.
He said talks are on with China’s Shanghai Electric, Donfang Electric and Harbin Power Equipment Corp for purchase of equipment for the plants.
“The fist plant in Orissa would be a sub-critical plant, while the rest two are planned to be based on super critical technology. We may also look at European suppliers for equipment,” Gupta said.
The host states would footage 25-30% of the power produced from the projects, while the rest would be traded through PTO India Ltd, he said.
B C Jindal Group is engaged in manufacturing of polyester, photographic products and steel pipes.