By Our Correspondent
BHUBANESWAR/DHENKANAL: Sajjan Jindal owned JSW Energy is expected to sign a deal with GMR Energy for acquiring 100 per cent stake in GMR Kamalanga Energy. The transaction had been put on hold given the ongoing uncertainty and will be revisited once the situation normalizes.The two sides had entered into negotiations in October 2019. GMR Kamalanga Energy Ltd owns and operates a 1,050-MW (3×350 MW) thermal power plant in Odisha, media reports said.
Post-acquisition, the total installed power generation capacity of JSW Energy will increase to 5,609 MW. This will expand the Company’s presence in the Eastern region of the country and further diversify its fuel mix and offtake arrangements.
In the past 5-6 years, Sajjan Jindal JSW group acquired assets worth Rs 36,628 crore (excluding Bhuhan Power). JSW group, acquired several distressed assets in India including Jaypee Group’s Power Projects, and Monnet Ispat Steel Mill. The group flagship, JSW Steel had also won the race to buy Bhushan Power and Steel for Rs 19,700 crore.
The expansion of its steel production facilities at Vijaynagar, Karnataka is on track from 12 mtpa to 18 mtpa (million tonnes per annum) though the expansion at much smaller plant in Dolvi in Maharashtra has been delayed by six months.
After adding Bhushan Power’s capacity and its own capacity, the company’s total capacity will touch 30 mtpa as it spent almost half of its Rs 49,000 crore expansion capex in the last two years.The acquisition of BPSL is not part of Rs 49,000 crore expansion capex.
JSW’s rival, Tata Steel, which acquired Bhushan Steel for Rs 35,200 crore, will be focusing on expanding its capacity in Odisha to eight mtpa with an investment of Rs 23,500 crore. Similarly, the Tata group holding company, Tata Sons, is infusion funds in group companies to make sure that their expansion plans remain on track.
The Sajjan Jindal is eyeing on POSCO site in Odisha’s Jagatsinghpur close to Paradip Port.The JSW Steel, had won as many as 4 Big size Iron Ore –Manganese Blocks under Joda-Koira mining circles of Odisha’s mineral rich Keonjhar –Sundargarh regions, is expected to start its mining operations by July 1 this year.
Sources said the JSW Steel has got nod of Union Forest and Environment Ministry to produce 29 Million MT per annum from 4 blocks of Ganua Iron Ore, Jajang Iron Ore, Narayanposhi Iron and Manganese and Nuagaon Iron Ore. Company hoped that once the 4 blocks functions with full capacity, it is expected to produce around 36 Million MT per annum and meet about 70% of its requirements. At present, Sajjan’s JSW has only 15% own Iron Ore Resources.
JSW won 4 major blocks which earlier held by KJS Ahluwalia Group and Rungta Mines Ltd Group and has started operations– Nuagaon (won on January 31),Narayanposhi ( won on February 2) and Ganua ( won on February 5) and Jajang ( won January 6) – with total ore reserve of 1,138.34 million tonnes. With the 4 Mines, an iron ore reserves linkage of more than 1,100 million tonnes has been secured for JSW Steel of Sajjan Jindal.
JSW Steel will have pay dues to Government for Nuagaon ,Narayanposhi,Ganua and Jajang blocks. Value of estimated reserves in INR Crores are as follows Nuagaon (Rs 1,85,683,47), Narayanposhi(Rs 42,571,12), Jajajng (Rs 5,511,44) and Ganua(Rs 24,982,79). This included 1% resource value, 0.5% affront payment and 0.5% performance security. For example, 1% security deposit for Nuagaon block will be around Rs 1856 Crore and NPV and stamp duty will be calculated extra.
