Prez launches work on Jindal Steel’s Rs 8,500-cr Jharkhand power project
Jindal Steel and Power Ltd is setting up a 1,320-mw captive power project here at an investment of Rs 8,500 crore, the foundation stone for which was laid on Tuesday by President Pranab Mukherjee.
The project is part of JSPL's ambitious Rs 75,000 crore investment plan in Jharkhand.
While laying the foundation stone, Mukherjee called for providing benefits of developmental projects to local people.
He said: 'There is a need for power for all, whether it is agriculture or industry... I agree that power produced at a place gets diverted to some other place... So we need to see that villages around the power plants, or from where coal is produced, have access to electricity. It is necessary.'
Noting that power shortages in cities are about 6 per cent, Mukherjee said they are much higher at 33 per cent in villages.
The project has secured all the statutory clearances, including environment and forests, and the company has acquired about 50-60 per cent of the land required, JSPL Chairman and Managing Director Naveen Jindal told reporters.
Moreover, the company has secured 100 per cent consent from the local people for acquiring about 1200 acres of land for the power project, he said.
'We have got 100 per cent consent from the villagers, all land is barren land. Everyone is very positive on the project,' Jindal said.
The company plans to fund the project at a debt to equity ration of 70:30. It will put in Rs 2,900 crore as equity. Power from the project will be used at JSPL's 6 million tonnes steel plant at Patratu, and additional electricity will be sold to the national grid.
'About 50-60 per cent of the power will be used in our steel plans in the state and rest will be sold to
grid,' he said.
Besides, the company will meet about 50 per cent of its coal requirement from Jitpur coal block which is located about 10 km from here.
The project is part of JSPL's ambitious Rs 75,000 crore investment plan in Jharkhand.
While laying the foundation stone, Mukherjee called for providing benefits of developmental projects to local people.
He said: 'There is a need for power for all, whether it is agriculture or industry... I agree that power produced at a place gets diverted to some other place... So we need to see that villages around the power plants, or from where coal is produced, have access to electricity. It is necessary.'
Noting that power shortages in cities are about 6 per cent, Mukherjee said they are much higher at 33 per cent in villages.
The project has secured all the statutory clearances, including environment and forests, and the company has acquired about 50-60 per cent of the land required, JSPL Chairman and Managing Director Naveen Jindal told reporters.
Moreover, the company has secured 100 per cent consent from the local people for acquiring about 1200 acres of land for the power project, he said.
'We have got 100 per cent consent from the villagers, all land is barren land. Everyone is very positive on the project,' Jindal said.
The company plans to fund the project at a debt to equity ration of 70:30. It will put in Rs 2,900 crore as equity. Power from the project will be used at JSPL's 6 million tonnes steel plant at Patratu, and additional electricity will be sold to the national grid.
'About 50-60 per cent of the power will be used in our steel plans in the state and rest will be sold to
grid,' he said.
Besides, the company will meet about 50 per cent of its coal requirement from Jitpur coal block which is located about 10 km from here.