Monnet Ispat has recently signed a non-binding MoU with JSW Energy to manage power business. However, its steel business will be intact.
Monnet Ispat & Energy has recently signed a memorandum of understanding with JSW Energy to sell majority stake of its subsidiary, Monnet Power Company Limited (MPCL) located at Malibrahmani, Angul in Odisha. The deal is valued INR 35.70 billion. However, Monnet’s steel business will remain intact.
Mr Sanjay Sagar, JSW Energy’s CEO, in the media stated due diligence will take 45-60 days for completion and only after its completion, the company will decide on share and valuation.
Mr Sagar added, “We are very aggressively looking for growth and this is just one of the projects which we found attractive. Currently, we are evaluating a few projects, are likely to conduct due diligence for 5-6 projects, and may decide to acquire 2-3 projects.”
Earlier, Monnet Ispat & Energy had won 7 Gare Palma IV/7 coal blocks in Schedule II coal block auction. While its subsidiary, MPCL, had won Utkal‐C in Schedule III action.
MIEL, which has a steel capacity of 1.5 MnT pa, is planning to start operation of its 1.2 MnT pa iron pellet plant during July-Aug’15.
MIEL is India’s 2nd largest producer of coal-based sponge iron. The company is in the process of transitioning to an integrated steel company with a capacity of 1.8 MnT pa. Currently, it has a sponge iron capacity of 0.8 MnT pa (0.3 MnT pa in Raipur and 0.5 MnT pa in Raigarh), steel capacity of 0.3 MnT pa (Raipur), structural steel capacity of 0.2 MnT pa (Raipur) and power capacity of 150 MW (60 MW in Raipur and 90MW in Raigarh).
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