Sajjan Jindal promoted JSW Energy, which has lined up investments over Rs 11,500 crore for three large power projects, is also actively looking for opportunities to make a foray into power distribution. The company is apparently in the final stages of negotiations to make its entry into the power distribution business. Refusing to divulge specifics, N K Jain, vice-chairman, JSW Energy, told FE, ?We intend to be present across the entire cross-section of the power business and believe that distribution is a good business to be in. We would like to get involved wherever state governments come forward and allow private participation.?
Power generation apart, the company has already signed an MoU to form a joint venture with the Maharashtra government to lay transmission lines for its 1200 MW power plant in Ratnagiri. The thermal power plant in Ratnagiri will entail an investment of Rs 4,500 crore and since the area is not adequately connected, the company has teamed up with the state government to set up the transmission lines.
JSW Energy, which is the holding company for all the power businesses, has floated three separate special purpose vehicles to take its three mega projects forward. The first is a Rs 1,860 crore, 600 MW power plant in Vijayanagar, Karnataka.
The company has also floated Raj West Power Ltd (RWPL), which is setting up a 1000 MW lignite based thermal power plant at Barmer in Rajasthan. The project has achieved its financial closure, whereby a consortium of 12 banks and financial institutions are providing rupee term loan aggregating Rs 3,750 crore. The cost of the project is estimated at Rs 5,000 crore and is being financed in the debt equity ratio of 3:1. JSW Energy has committed the entire 25% equity requirement amounting to Rs 1,250 crore.
While all these three are thermal projects, the company has also undertaken a 260 MW hydro power project in Himachal Pradesh.
While there is a lot of speculation that JSW Energy will look at an initial public offer to raise capital, Jain clarified that things are still very fluid. ?We might look at roping in a strategic investor or may look at getting any of these three SPVs listed, or even the holding company. We will take a call on this over the next few months.?