JSW Energy (Bengal) Limited will commission 1600 MW of power at Salboni in West Bengal by September 2014.
The expected date of completion is March 31, 2014 for the first unit and September 30, 2014 for the second unit, mentioned JSW Energy’s latest annual report. The power plant is being set up at the site of JSW Steel’s 10 million ton integrated steel project. JSW Energy (Bengal) Limited (JSWEBL) was incorporated on Februrary 2010 as a special purpose vehicle (SPV) between JSW Bengal Steel Limited (JSWBSL) and JSW Energy. JSWBSL has a 26 per cent shareholding in JSWEBL as a captive consumer, with remaining 74 per cent shares being held by the company. To the extent of 51 per cent of power generated, the SPV will sell power to JSWBSL and West Bengal State Electricity Distribution Company Limited while the balance 49 per cent is proposed to be sold on merchant basis.
The power plant, proposed to be set up as two units of 800MW each, would cost about Rs 9680 crore, including Rs 2,000 crore for the mines. JSWEBL has entered into sole and exclusive long term coal supply agreement with the West Bengal Mineral Development Corporation Limited on March 31, 2010, for supply of thermal coal from Ichhapur mine to its proposed power plant. The project is expected to achieve financial closure during fiscal 2011. The cost is expected to be funded on a debt equity ratio of 3:1. The total equity and debt is expected to be Rs 2,420 crore and Rs 7,260 crore, respectively.
Work on the Salboni steel project is also expected to start this year. The 10 million ton project would be implemented in phases, with the first phase of four million tonnes. The first phase would cost Rs 15,000 crore. The Bengal project was part of JSW’s target to take its capacity 32 million tonnes. The Bengal power project is part of JSW Energy’s blueprint for realizing a vision of 11,390MW of generation capacity by 2015. JSW Energy has also initiated work on a 1320MW power project at Chhattisgarh.