JSW Energy today said it has signed a binding MoU with Swaziland Electricity Company (SEC) and the Swaziland government to set up a thermal power plant in that country.
"JSW Energy Limited has signed a binding Memorandum of Understanding (MoU) with SEC and the Government of the Kingdom of Swaziland to set up a thermal power plant in the Kingdom of Swaziland in order to facilitate energy security and make Swaziland self-reliant in power by exploiting the natural resources available within the country," JSW Energy said in a BSE filing today.
According to statement, the capacity of the power plant to be set up will be decided by JSW Energy in consultation with SEC based on the coal resources found during the exploration of an area of approximately 16,000 hectares to be prospected by JSW Energy under a prospecting licence granted to them.
In addition to meeting the total power demand of Swaziland which currently stands at around 300 MW, JSW Energy and SEC shall also explore the possibility of exporting power to the neighbouring countries that are connected through a common transmission network, it said.
The MoU provides for setting up a thermal power plant and undertaking of mining activities pursuant to execution of definitive agreements - a long term Power Purchase Agreement (PPA) to be guaranteed by the Kingdom of Swaziland and fuel supply agreement from captive coal resources, among others.
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