Financial Daily from THE HINDU group of publications
Friday, Jan 23, 2004
Financial Daily from THE HINDU group of publications Friday, Jan 23, 2004 |
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Corporate
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New Projects Jindal Steel plans to set up 1,000 MW plant in Chhattisgarh Our Bureau
New Delhi , Jan. 22 JINDAL Steel and Power Ltd (JSPL) is poised to enter the power sector in a big way. The company is setting up a 1,000-MW coal-based power plant at Raigarh in Chhattisgarh with an investment of about Rs 3,999 crore. JSPL will be setting up the project through its wholly owned subsidiary, Jindal Power Ltd. The project will be set up in two phases. The first phase will have two 250 MW units and another two 250 MW units will be set up in the second phase. According to the JSPL Executive Vice-Chairman and Managing Director, Mr Naveen Jindal, "This project has been identified by the Prime Minister's Office (PMO) and the Ministry of Power as one of the 23 independent power projects for special attention for achieving financial closure. "As a result of this, the cost of the project has come down to around Rs 3,900 crore from the earlier estimated Rs 4,300 crore as the project will now enjoy import duty and excise duty exemption." Mr Jindal said that financial closure of the first phase would be in the next two to three months while that for the second phase will be around September-October this year. The cost of the first phase is expected to be around Rs 2,140 crore and will have a debt-equity ratio of 70:30 with a debt component of Rs 1,498 crore and equity of Rs 642 crore. JSPL will fund the equity over a period of three years and, if necessary, some of the investment companies of the group may also chip in funds, depending on the requirements and cash flow situation of the parent company, he said. JSPL is already in the process of setting up a 55 MW power plant with a project cost of Rs 207 crore, which is expected to be commissioned by March this year, following which the company's power generation capacity will increase to 205 MW from the existing 150 MW. JSPL has reported a 33 per cent increase in its net profit after tax for the quarter ended December 2003 amounting to Rs 80.19 crore while net sales went up by 27 per cent to Rs 350.07 crore.
More Stories on : New Projects | Power | Steel
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