Coal news and updates

JSW Energy eyes overseas coal assets to boost fuel security

JSW Energy today said it is exploring opportunities to acquire overseas coal mining assets to achieve fuel security for its power projects.

The power producer, which has an installed generation capacity of over 3,140 MW, has "put most of its expansion projects" on hold awaiting clarity on policy and regulatory issues.

Sajjan Jindal, Chairman and Managing Director of JSW Energy, today said the company continues to explore and evaluate various opportunities to acquire coal mining assets, "especially in the overseas market with an aim to achieve fuel security".

Addressing shareholders at the company's annual general meeting, he said that JSW Energy is developing relationships with coal miners in large coal exporting countries to ensure procurement of quality thermal coal at competitive rates and over term contracts.

Talking about future plans, Jindal said it would focus on organic growth and reduce exposure to merchant capacities as the regulatory scenario improves.

"We believe as the sector matures and consolidates, there will be inorganic growth opportunities for evaluation with a strategic fit to your company," he said.

JSW Energy's total installed capacity touched 3,140 MW after commissioning of the last four units of its 1,080 MW Barmer plant.

Regarding new projects, he said the 240-MW hydro project at Kutehr in Himachal Pradesh has received approvals from the Environment Ministry.

Further, the company's joint venture with Toshiba has commenced production activity for the supply of 2x660 MW and 3x800 MW supercritical turbine generator sets for NTPC.

Besides, the joint venture is expanding its capacity from 3,000 MW to 6,000 MW.

"During the year (2012-13), pending clarity on policy and regulatory issues, your company decided to consolidate operations and has put most of its expansion projects, with the exception of the Kutehr hydro project, on hold," Jindal noted.

In the last fiscal, the company raked in a consolidated profit after tax of Rs 904 crore.

"India's power sector, a critical component of the economy, was similarly affected given the adverse economic conditions and sector-specific challenges," Jindal said.

The domestic power sector is facing multiple woes including poor financial health of state distribution companies, fuel shortages, issues related to Power Purchase Agreements (PPAs) and hurdles in getting project clearances.

Source: The Hindu Business Line