India's JSW Energy to Commission 1,200 Megawatts of Power Generation Capacity in 2009-10

---

Researched by Industrial Info Resources (Sugar Land, Texas)--JSW Energy Limited (Bangalore), a group company of Jindal South West Holdings Limited (BSE:532642) (JSW) (Mumbai), has announced plans to invest more than $991 million during the current fiscal year, 2009-10, to commission power projects with a combined generation capacity of 1,200 megawatts (MW). The three projects to be commissioned are a 300-MW unit of the Barmer project in Rajasthan, a 300-MW unit of the Ratnagiri project in Maharashtra, and a 600-MW power project in Karnataka.

The 1,200-MW coal-based power project in Jaigarh in the Ratnagiri district of Maharashtra is being developed by JSW Energy (Ratnagiri) Limited (JSWERL) (Ratnagiri), a special purpose vehicle set up by JSW Energy to implement the project. The $892 million power plant will consist of four units of 300 MW each. Imported coal will be used to feed the plant, and JSWERL intends to make the plant a port-based facility to ensure easy import and transportation of coal. A port facility and a business center will be set up at the site within the next few years. The company has already made arrangements with a Chinese company for the supply of coal. It also intends to acquire and develop coal mines in Mozambique and Indonesia to meet the remaining needs of the project. The project is expected to utilize about 4.14 million tons per year of coal and the generated power will be fed to the 400-kilovolt (kV) gas-insulated substation switchyard that has four 400-kV lines up to Karad and Konya. The zero date of the project was July 4, 2007, and the project is expected to be completed in late 2010.

The 1,080-MW lignite-based pithead power plant, with eight units of 135 MW each, is being set up in Bhadresh in the Barmer district of Rajasthan. The project is being developed by Raj West Power Limited (RWPL) (Jaipur, Rajasthan), a subsidiary of JSW Energy, at an estimated cost of about $955 million. Lignite will be sourced from the nearby Kapurdi and Jalipa mines owned by Rajasthan State Mines and Minerals Limited (RSMML) (Udaipur, Rajasthan). However, development of the lignite mine is far from complete and hence, the first unit of the power plant could not be commissioned in March 2009, as was originally scheduled. The rest of the units are to be commissioned within two-month intervals of each other.

The Barmer Lignite Mining Company Limited (Jaipur, Rajasthan) is a joint venture set up by RWPL and RSMML to undertake the sourcing of lignite. The Kapurdi mine is expected to be ready by the end of 2009 at the earliest and the Jalipa mine in late 2010. RWPL has requested the coal ministry to make coal linkages available until the mines are ready. RWPL will supply the power generated to Rajasthan's power distribution companies -- Ajmer Vidyut Vitran Nigam Limited (Ajmer, Rajasthan), Jaipur Vidyut Vitran Nigam Limited (Jaipur, Rajasthan), and Jodhpur Vidyut Vitran Nigam Limited (Jodhpur, Rajasthan). Power purchase agreements have already been signed with the companies.

JSW Energy already owns and operates a 260-MW power plant in Karnataka that uses coal, gas, lignite, and water resources as feed. JSW Energy (Vijayanagar) Limited, a subsidiary of JSW Energy, is currently setting up a 600-MW thermal power plant in Toranagallu in the Bellary district of Karnataka.

JSW Energy plans to enter all aspects of the power market -- generation, transmission, trading and distribution. It is already making plans to set up power plants in the states of Andhra Pradesh, Gujarat, Himachal Pradesh, Jharkhand, Sikkim, and West Bengal. It has signed a memorandum of understanding with the state government of Gujarat to set up a 1,000-MW power plant in the Junagarh district. It is currently setting up a 260-MW hydropower project on the Chamba River in Himachal Pradesh at a cost of $338 million. It is also making efforts to set up a hydropower project in Sikkim. JSW Energy has set itself a target of becoming a 10,000-MW power company by 2015.

View Project Report - 89001120 89001175 89001216

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.