Naveen Jindal promoted Jindal Steel Power Limited (JSPL) is targeting South Africa and Mozambique to acquire more coal mines.
“We are looking at resources in many other countries for both coal and iron ore,” said Sushil Maroo, Director and Group Chief Financial Officer of JSPL.
Till now, the company has acquired diamond exploration licences in Congo, coal mining rights in South Africa, Mozambique and Australia, limestone exploration in Madagascar and copper mining in Zambia and Tanzania, among others.
BOLIVIA PROJECT
However, JSPL had to opt out of a nearly $2.1-billion project in Bolivia after differences with that country’s Government.
“Bolivia was a very ambitious project, it was the largest investment envisaged in Latin America by any Indian company,” Maroo told media persons at the sidelines of Assocham seminar. JSPL hopes to commission the first unit of the 6,000 MW run-of-the-river hydro power project in Arunachal Pradesh by 2020.
“We are setting up a 6,000 MW plant in Arunachal Pradesh, we are awaiting clearances and then will approach the electricity boards for PPAs (power purchase agreements) and thereafter the financial closure, first unit is likely by 2020,” Maroo added.
At the same time, he denied market speculation that JSPL is looking for joint venture partners for its hydro projects.
“We are not looking for any equity participation in our hydro projects,” he clarified.
COAL IMPORTS
The CFO indicated that excess import of coal due to shortfall in domestic production has had a big impact on the rupee's valuation and on forex reserves.
“If we are also importing coal in a big way after crude, then a lot of the foreign currency will go away and if it is not matched by exports from the country there will be pressure on the rupee. The rupee will depreciate over a period of time. It is all the more important for us that we reduce the dependence on import for the sector where we have the availability in the country,” Maroo explained.
COAL BLOCK AUCTION
JSPL is of the view that the proposed auction of coal mines should be done only after getting some statutory clearances for the blocks.
“The price (of mines) will depend on the quality of the mine, clearances that are available, the rehabilitation issues, and cost of mining, among others,” Maroo said.