Jindal Steel and Power Ltd. has bagged a contract to set up a 300 megawatt coal-fired power plant in the African nation of Botswana, according to reports.
The Navin Jindal-led company has been picked as a preferred bidder in a tender for commissioning the greenfield plant as an independent power producer, Reuters reported quoting a Botswana energy ministry notification. Three companies were in the race for the contract.
The contract is for the design, finance, construction, ownership, operation and maintenance of the power plant as well as decommissioning at the end of its economic life, according to the notice.
JSPL will sell the power to the Botswana Power Corporation (BPC) under an agreement to be negotiated between the two parties. The South African country plans to purchase power from the proposed thermal plant for the next 20 years.
The report mentioned that coal demand has picked up globally due to the energy crisis after the Russia-Ukraine war. Botswana has increased its coal exports to Europe via Mozambique and Namibia in the past months and the country's two operating mines expect to secure more new deals.
JSPL has a dominant presence in the steel, power, mining and infrastructure sectors. The company’s African presence includes mining operations and projects in South Africa and Mozambique.
JSPL is one of only three companies with operational mines in the coal-rich Moatize area. It is one of only three companies with operational mines in the coal-rich Moatize area.
Shares of JSPL are trading 0.4 percent higher at Rs 518.35.
