Jindal Power lines up Rs 65k-cr projects

Jindal Power lines up Rs 65k-cr projects New Delhi: Naveen Jindal-led Jindal Power on Friday said it will invest Rs 65,000 crore in new power projects and part of the financing for these would be done through its up to Rs 10,000-crore Initial Public Offer.

The Company, part of JSPL group, would create fresh thermal capacity of over 4,400 mw and hydel capacity of 6,100 mw, with commissioning of projects starting from 2014.

"We need internal financial of Rs 15,000 and the rest would come through debt for financing the projects.

"All this IPO money will primarily go to our expansion programme and balance would be funded from our internal accruals," Jindal Power Deputy Managing Director Sushil Maru told a news agency a day after the company's Board decided for the IPO of up to Rs 10,000 crore.

As of now, the company, with a net worth of over Rs 7,000 crore, is generating surplus funds of about Rs 1500 crore, he said, adding "finances would not be a problem at all." The firm plans to fund the projects in the debt-equity ratio of 70:30.

Besides, the company would look at all opportunities, including acquisition and bid for any ultra mega power project that the government may put on the block, he added.

"We have a 1000 MW power plant operating at present. We have lined up projects to add 10,500 MW capacity entailing an estimated investment of Rs 65,000 crore... we will also look at commercially the best opportunity be it greenfield, brownfield or even acquisitions," he said.