17 May 2004 – India’s Jindal Steel and Power said Sunday that it plans to enter the power trading business as part of intention to become an integrated power house.
“We have drawn up plans to enter power trading business for which we would seek a licence”, JSPL Vice President (Finance) Sushil Maroo.
The group would sell merchant power produced by its sister company Jindal Power (JPL) which is setting up a 1 000 MW power station in Raigarh in the state of Chhattisgarh.
JSPL would soon approach Central Electricity Regulatory Commission (CERC) formally seeking a licence.
Maroo said the foray into power trading would be a logical step for the company as it would enable it to further consolidate its presence in the sector.
“We are already present in power generation business…once our power plant is running we would also be distributing power to industrial consumers through a dedicated transmission link established by the company. Therefore it is only sensible for us to enter trading business”, Maroo said.
The Navin Jindal run company is the largest coal based sponge iron steel maker in the country with a total capacity of over one million tonnes. It already runs a captive power unit of 250 MW supplying power to its steel plant.
Maroo said JSPL plans to first trade power from its own sources but would look at other opportunities as and when they arise. JSPL would be in a more advantageous position as compared to pure traders due to ownership over generation facilities.
Power trading has been recognised as a separate business activity following the enactment of a landmark electricity legislation last year.
Nearly half a dozen players had approached the regulator seeking licences for trading including Reliance Energy, Tata Power, Essar and GMR.