JSW Bengal Steel (JSWBSL), a subsidiary of JSW Steel, is to form a SPV with JSW Energy (JSWEL) to set up a 1,600 MW captive thermal power plant in West Bengal with an outlay of Rs 9,680 crore. JSWBSL is to hold 26 per cent of the equity in SPV and the balance will be held by JSWEL.

The project cost was proposed to be funded on a debt-equity ratio of 3:1. The total equity component will be Rs 2,420 crore and Rs 7,260 crore debt. The company plans to use coal from its own mines, for which it likely to infuse Rs 2,000 crore and Rs 7,680 crore is to be invested in setting up two units of 800 MW each.

JSWEBL has entered into a long term coal supply agreement with the West Bengal Mineral Development Corporation for supply of thermal coal from Ichhapur mine to its plant.

Unit I is slated to be completed by 31 March 2014 and Unit II to commission by 30 September 2014. About 51 per cent of power generated will be sold to JSWBSL and West Bengal State Electricity Distribution Company  while the balance 49 per cent is proposed to be sold on merchant basis.

Also See:

JSW Energy draws major investment plan (05-Jan-10)

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