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Forum highlights
Presenting at IF -2011, Mr Sushil Maroo (Director Finance, JSPL)
highlighted the company’s focus on an integrated approach for both
power and steel expansions. The overseas acquisitions over last couple of
years would start contributing to the revenues and profits in a meaningful
way from the current fiscal. While the initial couple of CPP units have
struggled, the company is confident of commissioning and stabilizing the
balance units by the end of FY12. JSPL is also looking to grow
inorganically in the power business (see Figure 5). Angul project is now
expected to get fully commissioned by end FY13.
Performance of captive power plants (CPP)
q Two units of 135MW in Raigarh are still operating at 50-60% PLF but the
performance is expected to improve post monsoons. The first unit at Angul (135W)
has been performing well. The fourth unit of 135MW is expected to commission in
October 2011.
q The company has faced many problems during the commissioning of the first two
units at Raigarh: 1) very high ash generation given the poor quality of coal being
used 2) ash choking the ash handling plant 3) erosion of the refractory 4) each unit
of 135MW being different and thus spares of one cant be used for another 5) wet
coal which lead to sub-optimal performance of equipment.
q Orissa has not allowed open access to the company to supply surplus power outside
the state. The current rate at which Orissa buys power from captive power units is
Rs2.75/kWh. JSPL has appealed to allow open access and increase the rate for
buying power.
International operations share to grow
q International operations will be big contributors to revenues and profits in coming
years (thus far they have been negative contributors to bottom-line).
q Oman (DRI plant), Bolivia (iron ore), Indonesia (coal), South Africa and
Mozambique (both coal) would be contributing to revenues over the next 3-4 years
– the company has however not spelled out any targets for the revenues from
overseas entities.
Expansion plans of Jindal Power
q The work (on site) on 2,400MW project is expected to start in Oct-Nov 2011. The
company expects to commission the first unit of 600MW in 22-24 months post that
(looks aggressive).
q The company has got a letter for environmental clearance for the first 1,200MW
(for which it has got a coal linkage as well). The environmental clearance for the
balance 1,200MW is also there in-principle but the “letter of approval” from MoEF
will come once the company is able to show the coal availability for the balance
capacity. Jindal Power has submitted a letter to MoEF that it will be using imported
coal for the balance two units.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Forum highlights
Presenting at IF -2011, Mr Sushil Maroo (Director Finance, JSPL)
highlighted the company’s focus on an integrated approach for both
power and steel expansions. The overseas acquisitions over last couple of
years would start contributing to the revenues and profits in a meaningful
way from the current fiscal. While the initial couple of CPP units have
struggled, the company is confident of commissioning and stabilizing the
balance units by the end of FY12. JSPL is also looking to grow
inorganically in the power business (see Figure 5). Angul project is now
expected to get fully commissioned by end FY13.
Performance of captive power plants (CPP)
q Two units of 135MW in Raigarh are still operating at 50-60% PLF but the
performance is expected to improve post monsoons. The first unit at Angul (135W)
has been performing well. The fourth unit of 135MW is expected to commission in
October 2011.
q The company has faced many problems during the commissioning of the first two
units at Raigarh: 1) very high ash generation given the poor quality of coal being
used 2) ash choking the ash handling plant 3) erosion of the refractory 4) each unit
of 135MW being different and thus spares of one cant be used for another 5) wet
coal which lead to sub-optimal performance of equipment.
q Orissa has not allowed open access to the company to supply surplus power outside
the state. The current rate at which Orissa buys power from captive power units is
Rs2.75/kWh. JSPL has appealed to allow open access and increase the rate for
buying power.
International operations share to grow
q International operations will be big contributors to revenues and profits in coming
years (thus far they have been negative contributors to bottom-line).
q Oman (DRI plant), Bolivia (iron ore), Indonesia (coal), South Africa and
Mozambique (both coal) would be contributing to revenues over the next 3-4 years
– the company has however not spelled out any targets for the revenues from
overseas entities.
Expansion plans of Jindal Power
q The work (on site) on 2,400MW project is expected to start in Oct-Nov 2011. The
company expects to commission the first unit of 600MW in 22-24 months post that
(looks aggressive).
q The company has got a letter for environmental clearance for the first 1,200MW
(for which it has got a coal linkage as well). The environmental clearance for the
balance 1,200MW is also there in-principle but the “letter of approval” from MoEF
will come once the company is able to show the coal availability for the balance
capacity. Jindal Power has submitted a letter to MoEF that it will be using imported
coal for the balance two units.
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