Naveen Jindal-promoted Jindal Steel and Power (JSPL) will start setting up 1,500 MW of greenfield power capacity in five overseas markets from next year, a top official of the company said on Thursday.
?Initially, the company plans to set up two 150 MW greenfield power units in Senegal, Liberia, Mozambique and other such markets from next year,? the official said.
To set up the units, the company is finalising a capital expenditure of R14,000 crore in the next fiscal, equally divided in its steel and power business.
A large chunk of the investment in steel business would be for expanding JSPL?s steel manufacturing plant in Angul, Orissa. The company plans to expand the plant, which currently has a capacity of 1.5 million tonne per annum (MTPA) to 6 MTPA by 2015.
?We have already invested R16,000 crore out of the R30,000 crore investment target to take Angul?s capacity to 6 MTPA,? said VR Sharma, deputy managing director and chief executive officer (steel business), JSPL. ?I?m confident we will reach 6 MTPA by 2015.?
For the investment till date at Angul, the company has taken a debt of around R9,000-10,000 crore. Sharma said that the company wants to maintain a debt to equity ratio of 1.65:1 for the Angul project.
The company has paid for 4,000 acre of land at Angul and is currently in possession of 2,600 acre. In next phase of expansion, the company is setting up a blast furnace, coke oven and sinter plant.
At Angul, JSPL is using coal gasification to make direct reduced iron. It turns coal into natural gas which gives it an edge over competitors.
?We are awaiting the mining lease for Utkal-B1,? said Sharma. ?The allotted coal mines are for the power plant and the coal gasification unit.?