JSW Energy Ltd, a power company of Sajjan Jindal promoted Jindal South West Group (JSW), has sought alternative land from Gujarat to shift its power project from Junagadh to Dahej in South Gujarat.
Earlier, JSW Energy had signed a memorandum of understanding (MoU) with Gujarat government for developing imported coal-based power plant with a capacity of 1,400 Mw at Junagadh involving an investment of Rs 7,000 crore.
"The company is now proposing to set up 2,400 Mw power project at Dahej, which include 1,600 Mw power plant in first phase and 800 Mw in the second phase. The company had plans to put up this capacity at Junagadh earlier," said Krishna Deshika, joint group CFO, JSW Energy.
The company has requested the state government to allocate land for the project in Dahej. Around 1,500 acres of land is required for the project. It has also applied to ministry of coal for a long-term coal linkage for the proposed power plant, which is likely to attract investment around Rs. 10,000 crore considering the cost of Rs 4-4.5 crore for generating one Mw of power.
Explaining the reason for changing the site for the project, the company official said that Junagadh was identified for its proximity to Simar port since the power plant was imported coal-based. The greenfield port at Simar was to be developed by Shapoorji Pallonji Group.
"However, the survey by the developer found that the development of a port at Simar was technically not feasible. Therefore, JSW Energy requested Gujarat government to allot alternative land," he added.
"Establishment of power plant in Junagadh would have increase the cost of fuel transportation," company officials said. Currently, JSW Energy has a total installed capacity of 995 Mw, which it plans to increase up to 3,140 Mw by 2011 Mw and 11,390 Mw by September 2015. "Power plants aggregating 3,650 Mw are under operation or at advance stage. These projects are coming up in Rajasthan, Maharashtra and Himachal Pradesh," added VK Dhanuka, senior vice-president, energy projects, JSW Energy.
In addition to this, four other power plants of 7,740 Mw are under development stage, which include 3,200 Mw plant at Ratnagiri in Maharashtra, 1,600 Mw in West Bengal, 1,620 Mw in Jharkhand and 1,320 Mw in Chattisgarh.
For the power projects under construction and implementation stage, the company requires capital outlay of Rs 14,048 crore, of which Rs 9,979 crore will be raised through debt. In case of remaining Rs 4,069 crores, the company intends to mop up Rs 2,134 crore through its ensuing public issue.