JSPL invests Rs 6,000 cr to augment captive power base

Steel and power producer Jindal Steel and Power (JSPL) is investing about Rs 6,000 crore to set up 10 captive power units in its existing facilities in Chhattisgarh and Orissa to achieve energy security for its steel units.

"We will invest about Rs 6,000 crore for expanding our existing captive power facilities by setting up 10 power units. Six of those will come up in Orissa and four in Chhattisgarh," JSPL Director (Finance) Sushil Maroo told PTI.

The power units will have a total generation capacity of 1,350 Mw and would add to the company's present captive stock to feed the steel units.

The O P Jindal group aims to commission the captive power units in the next two to three years as it also hopes to augment its steel making capacity in the given time frame.

"The plants will be commissioned by 2010-11," he said. The firm has plans to double capacity at Raigarh unit and is setting up an integrated greenfield unit at Angul in Orissa. Also, the Navin Jindal-led firm has multi-billion dollar plans lined in Jharkhand.

At present, the company has an integrated steel unit at Raigarh in Chhattisgarh with the capacity to produce about three million tonnes.

The company has heavily invested in the steel and the power sector. It would set up 4x600 Mw super thermal power plant in Chhattisgarh through its subsidiary, Jindal Power, at an investment of Rs 10,000 crore.

On the commodity front, the company sees demand for steel picking up in the new year. It has also called for 15 per cent import duty on steel products, besides imposing countervailing duty to check cheaper arrivals.