Jindal Power eyes 4,500 mw in 4 yrs
Jindal India Thermal Power, a subsidiary of the BC Jindal group, is planning a power generation capacity of more than 4,500 mw in four years. Jindal Power will invest Rs 20,000 crore for the capacity, expecting high returns. "We expect 15-18 per cent return on investment for these projects,' said Director Punit Gupta. Though power is a regulated return sector, private sector companies have managed to better the 14 per cent return that the regulator allows. The Jindal group, which follows many other private sector companies in diversifying into power, is setting up the projects in the coal-rich states of Orissa, Chattisgarh and Madhya Pradesh. While it is planning a 2,000 mw project in Madhya Pradesh, for which a memorandum of understanding will be signed with the state government shortly, work on the 1,200 mw plant in Orissa is in progress. Financial closure of the Rs 4,400 crore Orissa project is expected by next month-end. The company also expects to procure main plant equipment (boiler-turbine-generator) through bidding. The project is expected to be commissioned by September 2010. "In Chattisgarh and Madhya Pradesh, the states have the first right to purchase of 30 per cent of the power, while in Orissa it is 25 per cent,' said Gupta. The rest of the power will be contracted through PTC India. The company is also planning a foray into hydroelectricity.