JSW Energy's Rs 16,000 crore Salboni project most competitive in capex: Officials

JSW Energy's Rs 16,000 crore capex for setting up its largest greenfield power plant - a 1,600-MW ultra-supercritical thermal unit- at Salboni in West Bengal will be the "most competitive" in terms of capital cost per megawatt among recent projects, company officials said on Sunday.

The company is also planning for more investments in the state, including a 900–1,000 MW pumped storage project in Purulia, as part of its 40 GWh storage capacity roadmap, combining pumped storage hydro and battery-based solutions.

The Salboni project, comprising two units of 800 MW each, marks JSW Energy's first major foray into eastern India. The group has a cement grinding unit at the Salboni site in the West Medinipur district.

“The project cost is Rs 16,000 crore, and it is the largest greenfield investment by the company. It also holds strategic significance," JSW Energy's Joint Managing Director Sharad Mahendra said.

JSW Energy Director (Finance) Pritesh Vinay said the project is being executed at a capital cost of Rs 10 crore per MW, making it one of the most cost-efficient power projects as compared to others recently announced in the country.

“West Bengal has been able to bid out the project that is most competitive. This is being the fastest execution as the foundation stone will be laid on April 21, after the project announcement in February,” he said.

The per capita power consumption in West Bengal is nearly half the national average. However, with the state government's thrust on industrialisation and urbanisation, demand is projected to grow at a pace faster than the national average, he added.

“Current annual consumption of 60 billion units is expected to be more than double to 134 billion units by 2035, which provides a robust case for investment,” Vinay said.

Commenting on the state's growth potential, Mahendra said, “If India is about 25-30 years behind China in terms of development, West Bengal is around 10-15 years behind compared to southern, northern or western India. That reflects the immense untapped opportunity here.” JSW Energy has signed a power purchase agreement (PPA) with the West Bengal government for the entire 1,600 MW capacity.

The first 800 MW unit is expected to be commissioned in 42 months, followed by the second in 48 months, Mahendra said.

At peak construction, the project is expected to generate employment for 4,000–6,000 people and create 800–1,000 permanent jobs once operational.

The power plant will also give a boost to a proposed industrial park, which is currently under evaluation, at Salboni.

The company is also in talks with the state government for a pumped storage project in West Bengal, with an estimated capacity of 900–1,000 MW and a potential additional investment of Rs 8,000–10,000 crore, the officials said.

“Our teams have visited potential sites, and we are awaiting further communication from the government on the pumped storage project,” Mahendra said.

JSW Energy has lined up an additional 18 GW capacity, in both thermal and green power, over the next few years, from 12.2 GW now.