Jindal Power to raise fund for brownfield project

New Delhi: Jindal Power said it would raise Rs 7,000 crore in the next one year from domestic and international sources to fund its brownfield project in Chhattisgarh.

'We plan to raise Rs 7,000 crore in the next one year from national and international sources for funding our thermal power project in Chhattisgarh,' Jindal Power Chairman Navin Jindal told reporters here.

Jindal Power, a subsidiary of the Jindal Steel and Power, plans to raise this amount through bank loans, by issuing local bonds and through external commercial borrowing (ECB).

The company is setting up 4x600 mw super thermal power plant in Chhattisgarh at an investment of Rs 10,000 crore at a debt and equity ratio of 70:30. 'The 30 per cent equity (Rs 3,000 crore) would come from internal accruals,' he said, adding the project would be commissioned in four years.

The company has also placed a Rs 5,040-crore order to state-owned Bhel for providing equipment to JPL's 4x600 mw O P Jindal Super Thermal Power Plant at Raigarh in Chhattisgarh, he added.

Bhel's scope of work in the contract includes designs, engineering, manufacture, supply and erection of boilers, turbines, generators and associated auxiliary.