Angul (Odisha): The Naveen Jindal-promoted Jindal Steel & Power Ltd (JSPL) will set up 1,500 MW of greenfield power generating capacity across five African nations.
“The company is going to set up 300 MW (2 x 150 MW plant) capacities each, across five African nations, including Senegal, Mozambique and Liberia,” a top JSPL executive told Business Line on condition of anonymity.
These projects are likely to start in the new financial year, starting April 1.
Investments
In addition, JSPL has decided to invest Rs 14,000 crore in the next financial year (2013-14).
The investments will be spread equally between its steel and power business, the executive added. The company is finalising its budget for next year. A chunk of investments for the power business in the next fiscal will go to the overseas greenfield plants, he said. The company will shortly decide how to raise funds for its capital expenditure plans. Recently, Bloomberg News had 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 plans 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 mt, said V.R. Sharma, Chief Executive for Steel Business, JSPL.
The company plans to export steel from Angul, which is nearly 210 km from Paradip port.
The Rs 30,000-crore project will source coal from the captive coal block Utkal-B1, about 7 km from the site.
“We are waiting for the mining lease for the block. As soon as we get this, we will start removing the over-burden,” Sharma told mediapersons visiting the project.
Till now, JSPL has spent Rs 16,000 crore for the steel and power project, to come up on 4,000 acres.
The company is maintaining a debt-equity ratio of 1.65:1. It has raised loans both from the domestic and overseas markets.
Land, connectivity
The company has got physical possession of 2,600 acres and payments have been made for 4,000 acres. The land acquisition is likely to be completed by July-August 2013, Sharma said.
JSPL has commissioned 405 MW capacity of the total 840 MW planned at the integrated steel and power plant in Angul.
Major infrastructure pending for the project include rail connectivity and the water pipeline.
The railway line is expected to be laid by May 2013 and the remaining 5 km pipeline for transporting water is to be completed in the next fortnight.
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