Jindal Steel and Power (JSP) Limited acquired debt-laden Monnet Power for Rs 410 crore via insolvency, a company official said on Thursday. Kapil Mantri, JSP's chief strategy officer, told PTI that the deal for the 1,050 MW Odisha based power asset was completed on Wednesday.
He said, "Through the NCLT track, we have won the Rs. 410 crore tender for the liquidation of the Monnet Power Power Plant. Mantri said the new asset will supply power to JSP's Angol steel plant, which is in expansion mode.
When asked about the operation of the plant, he said that it is a project under construction and his company intends to operate it during the next year and project new investments. We have yet to estimate the investment required to operate the plant. This asset will use 25 percent less coal to help reduce carbon emissions, the company official said.
“The acquisition is primarily for captive usage and will improve our bottomline going forward,” the official said adding that the power plant is some 5 to 7 km away from the coal mine and the company’s steel plant there.
Coal will be sourced from JSP's Uktal C, B1 and B2 mines. As part of the OP Jindal Group, JSP has a significant presence in the steel, power and mining sectors with an investment of Rs 90,000 crore worldwide.
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