Looking to acquire 4000 MW of power plants: JSW's Jindal

Written By Unknown on Sabtu, 24 Januari 2015 | 12.44

Sajjan Jindal is all set to take the JSW Group to the next level. Speaking to CNBC-TV18's Menaka Doshi from Davos he laid out his road map to ramp up his power business.

Sajjan Jindal is all set to take the JSW Group to the next level. Speaking to CNBC-TV18's Menaka Doshi from Davos he laid out his road map to ramp up his power business. He is set to pump in USD 4 billion to boost capacity. The group is looking to acquire 4000 megawatt (MW) of power plants and add 1500 MW organically.

Below is verbatim transcript of the interview:

Q: How much have you acquired?

A: We have acquired the JP hydro assets. So, now we are at about 4,500 MW and our target is to go close to 10,000 MW through acquisition and through greenfield projects.

Q: How much roughly would you hope to acquire?

A: Another 4,000 MW we would be acquiring through acquisitions and rest of us we will be doing greenfields.

Q: Are these again power plants that are owned by groups that are seeing debt to stress and therefore are looking to sell?

A: Yes.

Q: What is the rough outlay that you see in terms of the kind of money you will have to acquire for this additional 4,000 MW?

A: We are looking at a secured kind of business where we have both ends covered with the coal mine and the PPA in place and with a fixed return-on-equity (RoE). Therefore, the outlay is not really of great significance because we are looking at RoE.

Q: But it will give us a sense of what your capital demands will be?

A: It depends, some projects are lower invested, so they are cheaper and some are capital costs, so they are in a better state where you don't pay transmission charges. And so, all that is not so straightforward which will be real costs. A thumb rule could be 1 billion to 1.2 billion per MW.


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