Opinion Poll...
Should Bihar govt release naxals & save cops? |
|
JSW Energy to raise Rs 8000 cr for 2 projects |
| Category »
Business Posted On Saturday, July 24, 2010 | Agencies
Mumbai, July 24:
JSW Energy, part of the Sajjan Jindal-owned JSW Group, has initiated the process to borrow over Rs 8,000 crore to finance its forthcoming power projects in Chhattisgarh and Himachal Pradesh. The company plans to build a 1,320 megawatt coal-fired power project in Chhattisgarh and a 240 mw hydropower project in Himachal Pradesh.
JSW Energy currently has an average borrowing cost of about 11.4%. "We will raise debt for the two projects within six months," said JSW Energy CFO Pramod Menon. The company has appointed IDBI Bank as a lead manger for the fund raising.
The newly-listed company from the JSW Group, which sells 70% of the power it generates in the open market through higher tariffs, is currently grappling with environmental issues in Ratnagiri and Chhattisgarh. A public hearing with the local populace in Chhattisgarh is scheduled for August 7.
Speaking to reporters after a board meeting called to approve its fiscal first quarter results, JSW Energy vice-chairman N K Jain said a robust business outlook has led to higher merchant power rates which has improved the company's profitability. The company said its net profit rose more than threefold to Rs 299 crore. "The profit grew mainly due to increase in merchant power sales from new capacities," Mr Jain added. The company sold 1.8 billion units of electricity and accounted for a net sales of around Rs 964 crore, compared to Rs 297 crore in the previous year.
Currently, JSW Energy has an operational capacity of about 1,000 mw and targets to generate more than 11,000 mw in five years, of which a major portion will be sold in the open market at spot price to boost profits, according to company officials. "With a power deficit of over 14%, we expect better prospects for merchant power sales for next three years," said Mr Jain.
|
 Print
|  Mail it
|
|
Friday, September 03, 2010