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Jindal Steel weighs ‘two dozen offers’ to buy power projects

Jindal Steel & Power is examining about two dozen proposals to buy power projects that have acquired land and government licences to accelerate expansion, a senior executive said.

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Jindal Steel & Power  is examining about two dozen proposals to buy power projects that have acquired land and government licences to accelerate expansion, a senior executive said.

Jindal Power, a unit of Jindal Steel, whose Rs7,200 crore IPO plans have been delayed due to rocky market conditions, recently placed newspaper advertisements seeking to buy projects of above 1,000 mw.

“Today if you want to set up a project from absolute planning stage, it takes a hell lot of time to acquire land and acquire permissions,” Sushil Maroo, chief financial officer at Jindal Steel and Power, said in an interview.

Delay in land acquisition and obtaining environmental clearances have stalled several large projects in India including a proposed $12 billion steel mill by Korea’s Posco.

A recently-proposed new land bill, intended to overhaul the archaic law, falls far short of companies’ expectations, which say it favours rural landowners and will slow development and  capacity expansion.

The talks with project owners are in the initial stages and some decision on purchase will be taken within six months, Maroo said, without specifying how many deals Jindal Power was looking at firming up. The company will fund the purchase through
internal resources and debt, Maroo said.

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