JSW Energy to give priority to acquisition of overseas coal mines

With its plans to create 5,200 Mw of power capacity based on imported coal, JSW Energy, a power sector arm of Sajjan Jindal-led JSW Group, intends to accquire coal mines in overseas countries.

"In order to generate power at affordable and fix prices, acquisition of coal mines in foreign countries would be our priority. The company intends to put up around 5,200 Mw of power generation capacity from imported coal," said Sajjan Jindal, chairman and managing director, JSW Energy, which is hitting the market with its initial public offer (IPO) on 7 December.

The company plans to imports coal from Indonesia, Australia and South Africa. "We may pick up stakes in coal mines of South Africa, Australia and Mozambique. Indonesia is another destination where we will source coal on long term basis," said Pramod Menon, CFO, JSW Energy.

The company aims to install power generation capacity of 11,500 Mw over the period of next couple of years. The coal requirement for nearly, 6,000 Mw will be met through domestic coal.

It currently has coal mines in Orrissa, West Bengal and Jharkhand. JSW's three power projects having a capacity of 1,600 Mw each will come up at Jharkhand, Chattisgarh and West Bengal.

The company estimates that it would require 19 million tonnes of coal for installing 11,500 Mw of power generation capacity. Next year, the company is mulling to import 2 million tonnes of coal from Indonesia.