Press Trust of India / Kolkata Jan 20, 2010, 22:06 IST
JSW Steel today said its subsidiary JSW Bengal Steel will form a special purpose vehicle (SPV) with another group firm JSW Energy to set up a 1,600 Mw power plant in West Bengal.
Two units of 800 Mw each would be set up at an investment of about Rs 9,680 crore. Of this Rs 7,680 crore would be for setting up the power plant and Rs 2,000 crore for development of mines, the company said today. The plant would use thermal coal from the Ichhapur mines.
It said the project cost was proposed to be funded on a debt equity ratio of 3:1. The total equity component would be Rs 2,420 crore and Rs 7,260 crore debt.
JSWBSL will hold 26 per cent of the equity in SPV which works out to be Rs 629 crore and the balance will be held by JSWEL.
The target date for completion is March 2014 for the first unit and March 2015 for the second.
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