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| JSW Energy to invest Rs 2,000 cr to develop coal mines |
| BS Reporter / Kolkata Jun 07, 2010, 00:01 IST |
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JSW Energy (Bengal) Limited, a special purpose vehicle (SPV) for the Bengal power and coal project, will be investing about Rs 2,000 crore in coal mine development.
The SPV was incorporated in February 2010 with JSW Bengal having a 26 per cent stake and JSW Energy 74 per cent.
The SPV would set up a 2X800 MW captive power plant to meet the power requirement of JSW Bengal and sell excess power to the grid. The estimated cost of the project is Rs 9,680 crore, which includes an investment of Rs 2,000 crore in coal mine development.
The funding would be by way of debt and equity in the ratio of 3:1 and the target date for completion was 2014-15.
In March this year, JSW Bengal has entered into an exclusive long-term coal supply agreement with the West Bengal Mineral Development Corporation Limited (WBMDTC) for supply of coal from Kulti and Sitarampur coal blocks.
The company has already started boundary wall work for the Bengal project. “Steps would be taken this year for the Bengal project,” said Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel, the parent company.
In the first phase, four million tonnes would be commissioned, and is expected to cost Rs 15,000 crore.
The total capacity of the steel plant would be 10 million tonnes.
In a bid to meet funding requirements for various expansion projects, JSW Energy, is raising its borrowing limit by Rs 10,000 crore.
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