JSW Energy, J-Power of Japan talking alliance

JSW Energy, the power company from the JSW Group, is in talks with J-Power, Japan’s largest coal-based thermal power producer, to build power plants in India. A person familiar with the deal told DNA Money the company has been in talks with J -Power for “some time now”.

“The talks are at a nascent stage However, as I understand it, J-Power wants to enter the Indian market and is looking for a partner,” the person said. J-Power is not the only company JSW Energy is in talks with. S S Rao, managing director and chief  executive officer, JSW Energy, said, “Many foreign companies have approached us,  but nothing has been finalised with  anyone.”

JSW Steel, the flagship company of the JSW group, last week entered into an
alliance with Japanese steelmaker JFE Steel to produce auto-grade steel in India. The companies also said that, going forward, they may explore the idea of picking up stakes in each other.

Industry experts say the J-Power-JSW Energy deal, too, may go the same way.
JSW Energy on Monday announced that it will launch its initial public offering to raise Rs 2,700 crore on December 7.

The issue will close on December 9, 2009. Sajjan Jindal, managing director, JSW Energy, said the price band will be revealed on December 3. Turn to Page 22Pramod Menon, chief financial officer, JSW Energy, said, “We plan to repay Rs 475 crore debt on the books of JSW Energy from through the IPO proceeds.”

The company, as on September 30, 2009, had a total debt of Rs 7, 676 crore on its books. JSW Energy has an operational capacity of 995 mw and plans to reach 3140 mw by October next year. It plans to produce 11,400 mw by 2015.