Mumbai: JSW Energy, the first company to be listed on the bourses in 2010, said on Monday that it plans to invest around Rs40,000 crore in developing power projects of 8,000 MW.
“We have got 8,000 MW in the pipeline, so this money will be needed for that. The investment (for this) is close to Rs40,000 crore,” company’s MD Sajjan Jindal said on Monday but did not specify the duration for this investment.
The company is implementing projects worth 3,200 MW in Maharashtra, 1,320 MW in Chhattisgarh and 1,600 MW in West Bengal. It plans to become an over 11,000 MW company by 2015.
The power producer on Monday listed shares on the Bombay Stock Exchange where it opened at a premium of 2% over the issue price of Rs100. On the National Stock Exchange the scrip 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, 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 purpose,” he told reporters after the company’s listing ceremony in Mumbai.
JSW Energy, which has an installed capacity of 995 MW, is also setting up a 860 MW plant in Vijaynagar (Karnataka) and 130 MW plant in Barmer (Rajasthan).
The company has 2,790 MW capacity of projects under construction and implementation stage.
It will commission about 2,100 MW of units by December 2010, including the 1,200 MW plant in Ratnagiri, Maharashtra, Jindal said.
He added that 55 per cent of the power generated by the company would be sold commercially or on merchant basis, while the remaining 45 per cent 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,” 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.