Post Bina plant and JSPL deal, our capacity will be 6031 MW: Sanjay Sagar, JSW Energy

In a chat with ET Now, Sanjay Sagar, Joint MD & CEO, JSW Energy, says once the deal is done, the debt to equity ratio is expected to be slightly better than what it is now. Edited excerpts



ET Now: What is the valuation of the transaction for the Bina plant with Jaiprakash Power Ventures? The total EV as I understand is Rs 2700 crore. What will be the debt portion in the transaction?

Sanjay Sagar: Well as of now the EV has been signed at Rs 2700 crore but this is subject to mutually agreed adjustments as and when the final consummation of the deal takes place. And normally, we try to fund all our deals on our 25/75 debt to equity ratio and that is how we plan to do deal, finance this one also.

ET Now: Post the transaction, what will be your capacity?
Sanjay Sagar: Post this as well as the JSPL deal, we will have a capacity of at 6031 megawatts.

ET Now: And what is the scope of expansion at Bina?
Sanjay Sagar: The scope of expansion at the Bina Power Plant is exceptionally good. The infrastructure available to us can accommodate an expansion of up to 1600 megawatts.

ET Now: In terms of fuel and PPAs, how is the current status of the Bina Plant?

Sanjay Sagar: The Bina Power Plant has got PPA for 70 per cent of its capacity and it has got a fuel linkage for 100 per cent of its capacity.

ET Now: What is the current debt-equity situation for you and how will it look like post this deal?

Sanjay Sagar: Our current debt to equity stands at about 1:1.77 and we presume that when this deal takes place since it has to go through high court process, we expect it will take anything between 8 to 10 months. So at the end of that period when the deal is finally consummated, we expect the debt to equity ratio to be slightly better than what it is now.