Mumbai, Jan. 1: Jindal Power Ltd, which plans to raise Rs 7,200 crore through an initial public offering, wants to be an integrated energy player, offering transmission, distribution and trading services, apart from generation, captive fuel supplies and mining.
Jindal Power — a subsidiary of Jindal Steel & Power Ltd — has been engaged in the generation business since December 2007.
The company, led by Naveen Jindal, runs a 1,000 mega watt (MW) thermal power project near Raigarh in Chhattisgarh. This is the country’s first mega power project. It is now implementing another 2,400 MW project at an adjacent site.
While work on the 4x600 MW coal-based project is progressing well, the company is gearing up to commission two more thermal power projects and three hydroelectric ones with an aggregate installed generation capacity of 8,080 MW.
The two thermal power projects, in Jharkhand, are the 1,320 MW project at Dumka and a 660 MW project at Godda.
The hydroelectric projects, in Arunachal Pradesh, are a 4,000 MW project at Etalin, a 500 MW project at Attunli and a 1,600 MW project at Subansiri (Middle).
Another 2,640 MW thermal power project in Jharkhand, a 1,320 MW coal-based project at Angul in Orissa and a 220 MW hydroelectric plant at Chainpur Seti in Nepal are on the cards.
In its draft red herring prospectus filed with market regulator Sebi, the company said its agenda for growth was not to be limited to generation alone, and it would become an integrated energy player.
It has established a subsidiary, CETC, to engage in power trading.
The subsidiary has a category II licence that enables it to trade power produced by third parties.
Jindal Power also wants to diversify its geographical presence and develop projects closer to coasts to take advantage of imported coal.
The company is looking at a combination of long, medium and short-term purchase agreements with state distribution companies, industrial consumers and trading firms as part of its credit risk management plan.
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