JSW Energy Ltd. (JSWEL), a subsidiary of the Jindal South West (JSW) Group, is planning to begin power generation from its new unit at Vijayanagar by the end of September. The company had commenced commercial operations from another 300 megawatt (MW) unit at the same location in July.
Speaking to The Hindu, S.S. Rao, Joint Managing Director and CEO, JSWEL, said the company would participate in a power purchase tender floated by the Karnataka Government on Tuesday. He said the company had supplied power at an average rate of Rs. 6.50 per kilowatt hour during January-May 2009.
The 600 MW project (2x300 MW) had cost Rs. 1,860 crore; Rs. 465 crore has been funded through equity and Rs. 1,395 crore through debt.
Mr. Rao said the company had been initially sourcing coal supplies from the open market. However, in July it entered into a 25-year coal supply contract with an Indonesian company for supply of two million tonnes of coal from 2010-2011.
The company plans to sell up to 318 MW to JSW group of companies. The remaining power would be available for sale to other entities. “Merchant sales of power to other users would obviously be more profitable,” Mr. Rao said.
