JSPL to Invest Rs. 1,500 Cr to Operationalise Monnet Power Project
Jindal Steel and Power Limited (JSPL) will be investing about Rs. 1,500 crore over the next 12 to 18 months in making Monnet Power Project operational. This information was given by JSPL’s Managing Director, Mr. Bimlendra Jha while speaking to Press Trust of India (PTI).
Monnet Power Project to Supply Power to JSPL’s Angul Steel Plant
Monnet Power Project is an under-construction coal-based power project with a generation capacity of 1,050 MW, which comprises two units each of 525 MW capacity. It is located close to JSPL’s steel plant in Angul, Odisha. Mr. Bimlendra Jha explained that once this project is operational, it will be supplying power to JSPL’s Angul plant which is under expansion. Therefore, JSPL’s acquisition of the power project is for captive purposes.
Coal for the Monnet Power plant will be sourced from JSPL’s Utkal B1 and B2 mines, which have a reserve of approximately 347 million tonnes.
Assets of Monnet Power Project Acquired in ‘Slump-Sale’ Manner
JSPL acquired the assets of Monnet Power Project for Rs. 410 crore in a ‘slump-sale’ manner in December 2022, as per the Insolvency and Bankruptcy Board of India (IBBI) proceedings. This means that JSPL acquired these assets for a lump sum amount without attributing any individual values to them.
JSPL has acquired only the assets of Monnet Power Project and not any shares of Monnet Power Company Limited. Monnet Power owed about Rs. 6,000 crore to lenders, and in February 2020, bids were invited for the sale of its Angul plant after bankruptcy proceedings.
JSPL’s Angul Steel Plant to Achieve 25.2 MMTPA Capacity
Capacity at JSPL’s integrated steel plant at Angul is being upscaled to 25.2 Million Metric Tonnes Per Annum (MMTPA) from 6 MMTPA with an investment of about Rs. 1,19,952 crore.
Post the expansion, JSPL’s integrated steel plant at Angul will comprise a 5.17 MMTPA Coke Oven, 5.4 MMTPA Direct Reduced Iron (DRI) Plant and an 11.5 MMTPA Sinter Plant. JSPL will also establish a 14.0 MMTPA Blast Furnace, 13.2 MMTPA Basic Oxygen Furnace (BOF) and 6.0 MMTPA Electric Arc Furnace (EAF).
A 550 MW Captive Power Plant, 1.2 MMTPA Wire Rod Mill and 7.5 MMTPA Cold Rolling Mill (CRM), 0.376 MTPA Ferro Alloys Plant and 1.5 MTPA Cement Plant will also be set up at Angul as a part of this expansion.
About Jindal Steel and Power Ltd.: Delhi-based Jindal Steel and Power Limited is a part of the O.P. Jindal Group, and a major player in the steel industry. JSPL has manufacturing facilities at Raigarh in Chhattisgarh, Angul in Orissa and Patratu in Jharkhand. For the 2021-22 financial year, the company clocked a revenue of Rs. 56,921 crore.
