JSW Energy nears coal-supply linkage deal in Indonesia

Printed from

JSW Energy nears coal-supply linkage deal in Indonesia 26 Aug 2009, 0624 hrs IST, Pradeep Pandey, ET Bureau

MUMBAI: Sajjan Jindal-owned JSW Energy is close to finalising a coal-supply linkage pact in Indonesia and is also exploring options of acquiring coal mines in South Africa and Australia, to secure coal supplies for its forthcoming power projects. The company is in the final stages of completing due diligence for a 50-million tonne coal linkage in Indonesia, according to a person close to the development. JSW Energy has already identified a coal mine in South Africa and is in talks with Australian miners to tie-up fuel linkages for its proposed power plants and for JSW Steel. If the deals are finalised, JSW Energy would get additional coal linkage of 250 mt. Currently, JSW Energy has access to limited coal reserves in India and is largely dependant on imports. Besides making full-fledged acquisitions, JSW Energy is also in talks with the South African government for jointly developing coal mines. When contacted, joint MD SS Rao said: “We are open to all available overseas options.” He declined to divulge further details as the company has filed a regulatory draft with the Sebi for its forthcoming IPO that aims to raise around Rs 3,000 crore. It has targeted to commission 3,140 mw by the end of 2010. “We may enter the capital market by the end of October , depending on the regulatory approval,” Mr Rao added. JSW Energy will deploy the proceeds from IPO for developing identified generation and transmission projects, mining ventures and to service debt. It currently generates 560 mw of power from a plant in Karnataka and has 3,090 mw of generating capacity at various stages of implementation. The company has also entered into long-term power purchase agreements with the governments of Rajasthan and Maharashtra. JSW Energy has plans to import 13 mt of coal for its upcoming power plants at Ratnagiri and Vijaynagar, Karnataka. The company has also secured coal supplies from a block in Orissa where it has a JV with Mahanadi Coalfields, where it would be able to procure around 90 mt in the long term.

Gujarat leads India's power drive, adds 2,211 mw in 2 yrs

Sachin Kumar / DNA
Friday, August 7, 2009 9:28 IST

Ahmedabad: Thanks to the proactive and investor-friendly policy of the Gujarat government, the installed power capacity in the state leapfrogged from 8,079 MW in February 2007 to 10,290 MW in June 2009. This 27% rise in power generation capacity is the highest in the county in the past two years.

Between February 2007 and June 2009, the state increased its power generation capacity by 2,211 megawatt, leaving behind even Maharashtra, the largest producer of electricity in the country. Karnataka stood second with an additional 1,854 mw added during the same period while Tamil Nadu grabbed the third spot by adding 1,667 mw to its capacity.

Central Electricity Authority (CEA) data indicate that Gujarat, which ranks third in power generation, had an installed capacity of 8,079 mw in February 2007. This grew to 10,290 mw by June this year. The state sector's contribution to power generation stood at 5,701 mw while the private sector generated 4,591 mw. If the central government's 2,583 mw is taken into consideration, the total installed capacity of the state stands at 12,875 mw.

In June 2009, India had a total installed capacity of 1,50,323 mw, of which a major chunk (around 64%) is thermal power. The contribution of hydro power was 24.6% while the rest came from nuclear and other renewable sources of energy.

Experts give credit to the Gujarat government for the achievement in power sector. "The government had foreseen the enhanced power requirement of the state and had framed investor-friendly policies which attracted investment in private sector," said PK Mishra, chairman of the Gujarat Electricity Regulatory Commission. "The Vibrant Gujarat summit is one of the government's initiatives to woo investors for the power sector."

The state's private sector power producers agree. "The investor-friendly approach of the state government is the main reason why investment in the state's power sector has flown in," said RK Gupta, director, Adani Power Limited.

JSW Energy to go public with Rs 3k-cr IPO

The Financial Express
(http://www.financialexpress.com/news/jsw-energy-to-go-public-with-rs-3kcr-ipo/502260/2)
Posted: 2009-08-15 23:59:15+05:30 IST, Updated: Aug 15, 2009 at 2359 hrs IST

Mumbai: JSW Energy, a part of Sajjan Jindal-led JSW Group, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (Sebi) to enter the capital market with an initial public offering (IPO) of equity shares of Rs 10 each for cash at a price (including a share premium) aggregating up to Rs 3,000 crore to fund the proposed capacity addition of 12,000mw. The issue, which is to be decided through a 100% book-building process, comprises a net issue of equity shares to the public and a reservation of equity shares for eligible employees.

The company's move comes close on the heels of oversubscription of state-run NHPC's IPO for 24 times and Adani Power's Rs 3,000-crore issue for over 21 times.

The company earlier had to defer its plans to go for an IPO to raise around $1 billion and dilute 10% stake owing to the slowdown and volatility in the stock markets.

According to a company release, at least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% will be available for allocation on a proportionate basis only to mutual funds. The remainder will be available for allocation on a proportionate basis to all QIBs, including mutual funds. The company may consider participation by anchor investors in the QIB portion in accordance with applicable Sebi guidelines. Further, not less than 10% of the net issue will be available for allocation to non-institutional bidders on a proportionate basis and not less than 30% of the net issue will be available for allocation to retail individual bidders on a proportionate basis.

Currently, Raj West Power Ltd (RWPL), a subsidiary of JSW Energy Ltd, is executing a 1000mw lignite-based plant at Barmer, Rajasthan. Another subsidiary, JSW Energy (Ratnagiri) Ltd (JSWERL) is currently engaged in the implementation of a 1200mw coal-fired plant at Jaigad in the Ratnagiri district of Maharashtra. JSW Energy (Vijayanagar) Ltd (JSWEVL) is executing a 2 X 300mw power plant at Toranagallu, Bellary. JSWEL has also signed an MoU with the Gujarat government to implement a 1000mw plant in Junegarh district.

Further, the company proposes to execute power projects in West Bengal, Jharkhand and Andhra Pradesh. It is also actively pursuing plans to enter into the hydro sector in Himachal Pradesh and Sikkim. The company also plans to enter the transmission sector.

The company has been awarded the operation & maintenance contract of the 100mw captive power plant at JSW Steel. The O&M contracts for the captive plant and the 2 x 30mw power plant at SISCOL being executed by JSW Steel Ltd will also be entrusted to JSW Energy after declaration of their commercial operation.

SPM touches alarming level in Chanda: Report - Nagpur - City - NEWS - The Times of India
Proshun Chakraborty, TNN 9 August 2009, 02:44am IST

NAGPUR: With the suspended particulate matter (SPM) touching alarming levels in Chandrapur, living in this otherwise forest area has made life difficult. Thanks to the Chandrapur Super Thermal Power Station, air pollution has once again become a cause of concern for the citizens.

A survey conducted by the Maharashtra State Pollution Control Board (MPCB) revealed that last year's SPM levels were far higher than they were in the past. As per figures provided by the MPCB, the SPM levels in Chandrapur last year touched 924 micrograms. Notably, the levels should not be more than 100 micro-grams.

The pollution levels in sensitive areas, which house schools and hospitals, too have surpassed the permissible limit. Rampant industrialisations, apart from fumes emitted by the power station and other industries, is being attributed to the problem. Ahir claimed that in the recent past, over 65% of forest areas in the district have vanished. Starting from Ballarpur to Warora, many jungles have disappeared due to set up of new industries. However, the MPCB has failed to keep check on pollution norms, he alleged.

A senior MPCB officer said 150 mg/Nm3 was the permissible limit for any increase could prove hazardous for health. "Besides power station and new coal mines in and around Chandrapur is responsible for high levels of pollution," said Chandrapur MP Hanshraj Ahir.

Citing examples of violation of pollution norms by CSTPS, Ahir said in 2008 the unit has allegedly exceeded its permissible limits of releasing suspended particulate matter. On March 4, 2008, Unit 2 had exceeded its permissible limits by generating 924 SPM. Similarly, another unit on the same day (March 4, 2008) had recorded 536 SPM. Likewise, over 20 times, the SPM has exceeded over 200 mg/Nm3, said the MP. Ahir said, "This is an issue which needs to be tackled seriously. It's high time that something concrete is done."

Thursday, August 6, 2009

Power companies charged up as fund tap opens

http://www.business-standard.com/india/news/power-companies-chargedas-fund-tap-opens/366246/ PB Jayakumar / Mumbai August 07, 2009, 0:58 IST J Suresh Kumar, chief financial officer of the Hyderabad-based Lanco Infratech, says the lull in raising funds in the past few months is now a distant memory. “The power sector has always been rosy. There were only some temporary problems in the past few months due to liquidity issues in the global markets. That phase is over. At least 15,000 Mw of projects worth over Rs 70,000 crore will achieve financial closure in 2009-10,” he said.

Tata Power profit doubles to Rs 396 cr

The Hindu Business Line : Tata Power profit doubles to Rs 396 cr

Tata Power profit doubles to Rs 396 cr

Our Bureau

Mumbai, July 31 Tata Power has registered a 108 per cent growth in net profit at Rs 396 crore for the quarter ended June 30, 2009, up from Rs 190 crore in the same period last year.

This was on account of a revenue adjustment of Rs 232 crore and reduction in expenses.

The adjustment is linked to the Maharashtra State Electricity Regulatory Commission tariff orders last year and the Appellant Tribunal’s judgment for electricity received this fiscal.

Operating income fell marginally to Rs 2,015 crore (Rs 2,026 crore). Sales volume of electricity units was up a tad to 4,180 million units (MUs) from 4,115 MUs.

The Trombay thermal power station generated 2,778 MUs during the year, from 2,669 MUs in the previous year. The generation was 803 MUs (784 MUs) at the Jojobera facility and 107 MUs (92 MUs) at the Belgaum plant. Implementation of the 4,000-MW Mundra project is on track and overall project progress is 26 per cent, said a press release.

The 1,050-MW Maithon Power Ltd, a 74:26 venture between Tata Power and Damodar Valley Corporation, has achieved 54 per cent completion. The first unit is scheduled to be commissioned by October 2010 and the second by April 2011.

On Friday’s trade, the Tata Power stock on the BSE closed at Rs 1,302.5, up from the previous close of Rs 1,293.90.