Regional: India?s JSW puts Ratnagiri expansion on hold

Indian firm JSW Energy on Thursday said the plan to expand its Ratnagiri power plant by 3,200 Mw would be postponed till issues regarding imported coal were sorted, reported an Indian media.

However, the plan for 1,200 Mw of capacity would be commissioned on schedule. Two units of this project are physically operational, the third has begun commercial operation and the fourth unit will be operational soon.

Chairman Sajjan Jindal, said they were awaiting clarity on the government stand regarding imported coal-based projects before going for more of such capacity. These projects are facing trouble since Indonesia decided to index its coal exports to global prices and Australia is coming up with a tax on mining. The company is already importing all its coal requirements on a spot basis and is facing the heat.

"Even long-term contracts of coal do not have fixed prices," said Jindal. "The problems in the power sector will continue for the next one year."

While imported coal-based projects are under review, the company is continuing the development of three domestic coal-based power projects -- a 1,320 Mw Chhattisgarh project, a 1,600 Mw project in West Bengal and 1,620 Mw in Jharkhand.(*)