Oct 24: JSW Energy Ltd, a division of the Mumbai-based JSW Group, is joining hands with the Government of the Kingdom of Swaziland to set up a new thermal power plant and related activities in the Swaziland.
“JSW Energy has signed a binding Memorandum of Understanding (MoU) with the Swaziland Electricity Company (SEC) and the Government of the Kingdom of Swaziland to set up a thermal power plant in the Kingdom of Swaziland in order to facilitate energy security and make Swaziland self-reliant in power by exploiting the natural resource available within the country,” said the company in a regulatory filing on Monday.
The MoU provides for setting up a thermal power plant and undertaking of mining activities pursuant to execution of definitive agreements including a long term Power Purchase Agreement (PPA) to be guaranteed by the Kingdom of Swaziland along with a fuel supply agreement from captive coal resources and facilitation of other consents and approvals including associated infrastructure facilities to support coal mining, power generation, evacuation and allied activities.
According to the filing, the capacity of the proposed plant will be decided by JSW Energy in consultation with SEC based on the coal resources found during the exploration of an area of approximately 16,000 hectares to be prospected by JSW Energy under a prospecting license granted to them.
The development aims at meeting the total power demand of the Kingdom of Swaziland (currently at around 300 MW). Additionally, JSW Energy and SEC will also explore the possibility of exporting power to the neighbouring countries that are connected through a common transmission network.
The Sajjan Jindal controlled JSW Energy Ltd has 4,531 MW of operational generating capacity. The company has an equity capital of Rs 1,640.05 crore and a market capitalization of Rs 11,595.19 crore.