Billionaire politician Naveen Jindal promoted Jindal Steel and Power will set up 1,500 MW of greenfield power plants across five African nations.
"The company is going to set up 300 MW (2X150 MW) of power plants each across five African nations. They include Senegal, Mozambique and Liberia, among others," a top executive JSPL told Business Line, under conditions of anonymity.
These projects are likely to start in the new financial year, starting April 1.
In addition, JSPL has decided to invest Rs 14,000 crore in the next financial year (2013-14). The investments would be equally spread between its steel and power business, the executive added.
The company is in the last legs of finalising its budget for the next year.
A chunk of the investments for power business in the next fiscal would go for these overseas greenfield plants, he added.
The company would shortly decide the debt it would raise to fund its capital expenditure plans.
Recently, Bloomberg News quoted JSPL Group Chief Financial Officer Sushil Maroo saying that the company would mop up Rs 6,000 crore in 2013-14. This would include $400 million of overseas loans and $300 million of foreign-currency bonds.
JSPL plants to achieve full capacity of 6 million tonnes in its upcoming steel plant in Angul, Odisha by 2015.
Till now, the private steel and power company has commissioned 1.5 million tonnes, said V.R. Sharma, Chief Excutive for Steel Business in JSPL.
The company targets to export steel manufactured from Angul, which is nearly 210 km from Paradeep port.
The Rs 30,000 crore project would source coal from captive coal block Utkal-B1, which is nearly 7km from the site of the steel mill.
"We are waiting for the mining lease for the block. As soon as we get this, we would start removing the over burden," Sharma told mediapersons visiting the project.
Till now, JSPL has spend Rs 16,000 crore for the steel and power project to be spread across 4,000 acres.
The company is maintaining a debt to equity ratio of 1.65:1. It has raised loans both from the domestic and overseas market.
The company has got physical possession of 2,600 acres and payments have been made for complete 4,000 acres.
The complete land is likely to be acquired by July-August 2013, Sharma said.
JSPL has commissioned 405 mw of power capacity out of total 840 megawatts planned at the integrated steel and power plant in Angul.
The last unit of the power plant would be targeted by August 2013, Sharma said.
Major infrastructure pending for the project include a railway connectivity and water pipeline.
The railway line is expected to be drawn by May 2013 and the remaining 5Km pipeline for transporting water is to be completed in the next fortnight.
(Business Line is visiting JSPL's Angul Project on invitation from the company.)