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JSW Energy plans to invest₹10,000 crore in expansion

Prashant Jain

Prashant Jain   | Photo Credit: SHASHIASHIWAL

Most new capacities to come from renewable sources: CEO

JSW Energy is planning to invest as much ₹10,000 crore to expand its power generating capacity to 6,600 mega watts (MW) from 4,559 MW now, and to 20,000 MW in a phased manner.

“We plan to enhance our capacity to 10,000 MW in the next three to five years and to 20,000 MW in five years thereafter. Most of the new capacities will come from renewable sources of solar, wind and hydro power projects,” CEO Prashant Jain, told The Hindu.

The company is working on three projects, of which two are likely to be acquired by the end of this fiscal and one greenfield hydro power plant of 240 MW would come up in Himachal Pradesh in the next five years.

JSW Energy is in an advanced stage of negotiations to buy Ind-Barath Energy (Utkal) Ltd.’s 700 MW under-construction thermal power plant in Odisha. The committee of creditors has approved the company’s resolution plan under the corporate insolvency resolution process. The closure of the transaction is subject to NCLT approval. “The financial creditors will get around ₹1,000 crore against the admitted claims of ₹4,000 crore. Besides, we have to invest another ₹1,000 crore to complete the construction of the plant and restart it in the next 12-24 months. This will imply a valuation of ₹3 crore per MW,” JSW Energy COO Sharad Mahendra said.

The company entered into exclusive discussions for potential acquisition of GMR Kamalanga Energy Ltd., which owns a 1,050 MW operating thermal power plant in Odisha. The size of the acquisition is said to be between ₹4,000 crore and ₹5,000 crore. “Negotiations are on to buy GMR’s plant, its a operating plant and start generating cash from day one,” he said.

Profit rises

The company reported a 11.7% rise in its second quarter consolidated net profit to ₹353 crore on falling finance costs. The rise in profits was reported on a 13% fall in revenue to ₹2,232 crore primarily due to fall in fuel costs.

Besides, company’s wholly owned subsidiary JSW Energy (Kutehr) Ltd has commenced construction of 240 MW hydro power plant in Himachal Pradesh.

“The company has capex of Rs 2700 crore for this hydro plant and we have so far already invested Rs 300 crore. It will take 54 months for commissioning of this project,” said Mr. Jain.

The project was started after Haryana Power Purchase Centre accepted its offer for supply of hydro power and filing the necessary petition for approval with Haryana Electricity Regulatory Commission.

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Printable version | Feb 21, 2020 7:23:49 AM | https://www.thehindu.com/business/jsw-energy-plans-to-invest10000-crore-in-expansion/article29857220.ece

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