Jindal Steel and Power Ltd (JSPL) is weighing various options to expedite its project development in domestic land and also exploring options in the overseas market. Naveen Jindal owned company which has operations in steel manufacturing and power generation has sought, from the Ministry of Power and Ministry of Coal, an early resolution of the issues pertaining to its upcoming power and mining projects.
JSPL, which has an installed capacity of around 2,500 MW, sells a major portion of its capacity to power exchanges and utilizes 1,000 MW as captive power for its steel plants. The company has posted a negative growth for the year ended March 2013, which was mainly due to sales at lower rates at exchanges and power evacuation problems in certain regions.
The company in its March quarter investor conference call indicated evacuation problems had been only partly resolved. This resulted in JSPL selling 30 per cent of its volume to power exchanges, which fetches a lower rate compared to the normal market. Barclays Research analyst Chirag Shaah says a 4.3 per cent sequential drop in power production volumes in the standalone business suggests the 1,350-MW Raigarh project could be facing further stabilisation issues. The segment's profitability also remained affected by the non-availability of captive coal. However, JSPL expects Indonesian coal to be available in the September quarter.
Moreover, the company company is expanding its capacity by commissioning its 2,400 MW power project by second quarter of FY 2014-15. The project has been delayed on account of not getting clearances in time. The first unit of 600 MW was expected to be commissioned in the June 2012 quarter, is now expected to be commissioned in the September 2013 quarter, while the second unit is expected to come up by the December 2013 quarter. In addition to this the company expects to commission its 1,320 MW captive power plant at Godda in Jharkhand by the end of 2016. Overall, the company plans to add about 16,000 MW by 2020.
Discussing on the company's plan for power projects, JSPL Chairman Naveen Jindal says, 'If we start talking about our plans, the plans are many, we keep many things in pipeline, this plan, that plan, you know not all plans fructify. So we're not saying these kind of things. What has to be believed is that setting up a power plant is a very challenging job. It is easy to talk, very difficult to work actually.'
The company expects to commission its 1,320 MW captive power plant at Godda in Jharkhand by the end of 2016. The thermal power plant project (2 x 660 MW) will entail an estimated investment of Rs 8,500 crore. ôIt will take us 42 months to build the plant. We will require about 1,200 acre of land for the project. So far, we have acquired nearly 50 per cent of the land. There has been 100 per cent consent of the land-owners,ö said Jindal.
According to him, a part of the coal required for the power plant would be sourced from the Jitpur coal block, 10 km from the project site. JSPL is in the process of acquiring nearly 1,000 acre of land at the coal block. Jindal also pointed out that Jitapur block currently has a reserve of about 65 million tonne of coal and it could feed the Godda power plant for 15 years. The coal block has received preliminary forest clearance. Power generated at the Godda plant is meant for JSPL's upcoming integrated steel plants at Patratu and Asanboni, both in Jharkhand. When asked about equipment sourcing for its upcoming power projects, Ravi Uppal, newly appointed MD and CEO of JSPL said, 'We deem it necessary to acquire equipment which gives us the best value for money. So far we have used equipment on most of the big projects that we have done on 4 X250 MW and 4X 600 MW which is from various vendors including domestic and international, but we also have 10 units of 135 MW which we have sourced from Chinese companies.' The company keeps evaluating the competitiveness and the quality of the equipment on a ongoing basis. 'So when we have to take a decision on a project like Gauda, so we'll see what's the best option available to us and we choose that,' Uppal added.
JSPL's Power Portfolio The power subsidiary of JSPL, Jindal Power Ltd (JPL) has set up India's first mega power project among the private players, at Tamnar in Raigarh, Chhattisgarh. With a set plan for 20,000 by 2020, JPL intends to become an integrated power company. In order to achieve the set target for power generation, the company started power generation over a decade back. Initially, it was having a captive power facility using waste heat from the rotary kiln boilers and the coal rejects of the washery. Over the years, it has installed captive power plants of over 1,700 MW.
Tamnar Mega Power Project Jindal Power Limited is operating a 1,000 MW (4x250 MW) thermal power plant, the first mega power project in the private sector, at Tamnar in Raigarh district of Chhattisgarh.
Expansion Plan JPL has a project portfolio of 17,297 MW in various stages of operation, implementation and planning.
I wish to start pvc / pp electric wire unit in Delhi. What kind of information I can get if I subscribe for your magazine
Pls invite me all auction in gujarat
we are doing business developing for solar power ,thermal power , customer supporting and we have 45 mw splar power on hand needs investors.....
pls call +910842559230