Press Release
New Delhi , 27 Jan 2006

JAL has been selected by Madhya Pradesh State Mining Corporation Limited as a joint venture partner.

THE JV COMPANY
A joint venture company between Madhya Pradesh State Mining Corporation Limited (MPSMCL) and Jaiprakash Associates Limited (JAL) has been incorporated to Develop Coal Mine, undertake Coal production and Sale of Coal from Coal Block/Blocks which may be allotted to MPSMCL. JAL has been selected by MPSMCL as a JV partner through competitive bidding process.

AMELIA (NORTH) COAL BLOCK
Ministry of Coal, Government of India has allotted AMELIA (North) Coal Block in Sidhi District to MADHYA PRADESH STATE MINING CORPORATION LIMITED for Development and Mining operations. Amelia Coal Block has estimated Geological reserves of about 118 million tonnes and Extractable Coal Reserves of 70 million tonnes.

JAIPRAKASH ASSOCIATES LIMITED – THE JV PARTNER

JAIPRAKASH ASSOCIATES LIMITED, the flagship Company of Jaypee Group is engaged in the business of development of River Valley & Hydropower Projects, manufacturing and marketing of Cement, Tourism and Education etc.

During the last 40 years since inception, JAL has attained a leadership position in construction works of Hydro Power Projects and has been executing EPC Contracts for Clients in India and abroad, besides for its own projects for Hydro Power, Cement and Hospitality. JAL has an enviable record of Underground works, Tunneling and Mining operations. JAL, over the last 5 years has done over 100 Kms. of Tunneling works and over 30 Lac tones of underground excavation at 1000 meter below ground level.

JAL has strong presence in the State for the last over 20 years, having country’s largest single location cement manufacturing facility at one location, in Rewa with 7 million tons per annum capacity; 3 captive thermal power plants with cumulative installed capacity of 88.5 MW; Heavy Engineering Workshop at Rewa; involved in development of Indirasagar and Omkareshwar Hydropower projects as EPC Contractors and Educational & Social initiatives at all spectrum of education curve imparting education to over 4,000 students. Today through Cement Business JAL is able to provide direct employment to over 5,000 persons, cascading impact on downstream employment generation to about 20,000 persons.

JAL has strong financials, having Market Capitalisation of over Rs. 7,000 Crores and has recorded Annual Turnover of Rs. 3,000 Crores (Year 2004-05). The Company is consistently profit making and Dividend paying company.


THE PROJECT

MPSMCL and JAL is forming a Joint Venture Company in the name and style of MADHYA PRADESH JAYPEE MINERALS LIMITED, to develop the Coal Block, undertake Mining operations and market the Coal. The Joint Venture Company shall make an investment of approx. Rs. 400 Crores to develop the Coal Block. Expected Annual rate of production will be 2 million tonnes. MPSMCL shall hold 30% equity in JV Company at Zero investment. MPSMCL will not be required to make any financial contribution and/or any financial commitment to the JV Company of any nature at any time. MPSMCL is guaranteed of assured income by way of Facilitation Fee on each tonne of Coal produced – estimated at Rs. 1000 Crores during the life of Coal Block.

JAL and its Associates are committed to set up Thermal Power Generation Plant in the State having capacity of 1000 MW, in two phases, so that market of Coal produced from Amelia (North) Coal Block is assured. JAL and its Associates may implement the Power project in two phases of 500 MW each, with first phase of power project linked with Amelia (North) Coal Mining Project. For implementation of second phase, another 500 MW, JAL/MPSMCL will endeavor to find coal block/s which have sufficient reserves to meet the requirement of coal for 2nd phase of 500 MW plant and MPSMCL will provide necessary support in obtaining the Coal Block/s.

The estimated investment in development of Amelia Coal Block and implementation of phase - 1 of power plant is Rs. 2,400 Crores. An additional investment of Rs. 2,400 Crores will be made in implementation of phase – 2 of the Project. The Project will generate employment opportunity for over 3,000 persons and cascading impact on downstream employment generation.

Phase-I investment by JAL in this venture which also includes 2X250 MW Thermal Power would be largest investment in power sector in last 10 years in state of Madhya Pradesh. MPSMCL deserves credit for taking steps which would also result in mitigation of shortage of Power in MP as the electricity from this power plant shall not only be cost effective but will also bridge the gap of Demand-Supply as there is clear 20% shortage of power in the state. Upon signing of the Agreement, the JV Company will take up exploration of the Coal Block and also pursue various clearances from the statutory authorities to ensure timely implementation of the Project.

COPYRIGHT ©2006. Jaiprakash Associates Limited. Optimised for 1024x768 resolution Site Map | Disclaimer