Tag Archives: JSW Steel

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Sajjan Jindal Interview on JSW Energy: Merchant power tariff will come down in 3-4 years

JSW Energy’s IPO is coming up on 7 Dec 2009. The above video shares some key thoughts from Sajjan Jindal, VC and MD of JSW Steel, who believes that in 3-4 years, merchant tariff rates will converge with PPA rates from independent power plants, including his own.

JSW Energy is also keen to have super critical thermal power plants and also nuclear power plants if possible in future.

Point to note: Sajjan Jindal has a track record in creating wealth from technology investments. We will be happy to see his involvement in decisions related to power plant choices.

For investment returns from JSW Energy, he feels a 20-25% ROE (return on equity) will make him and his investors happy. We agree.

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Indian Power Sector Growth Plan

To enhance power supply in cost effective ways is one of the top priorities for the country. During the quarter April-June 2009, the energy and peaking shortages in the country were 9.8% and 12.3% respectively.

The Compound Annual Growth Rate (CAGR) of power demand for the last five years has been 6.80% as against power supply CAGR of 5.88%. The CAGR of your Company’s power generation has been higher at 6.79%. Strong appetite for electricity consumption in the country translates into robust growth outlook for power players like NTPC. Continue reading Indian Power Sector Growth Plan →