July 26, 2010: JSW Energy, part of the Sajjan Jindal-owned JSW Group, has initiated the process to borrow over Rs 8,000 crore to finance its forthcoming power projects in Chhattisgarh and Himachal Pradesh. The company plans to build a 1,320 megawatt coal-fired power project in Chhattisgarh and a 240 mw hydropower project in Himachal Pradesh. JSW Energy currently has an average borrowing cost of about 11.4%. "We will raise debt for the two projects within six months," said JSW Energy CFO Pramod Menon. The company has appointed IDBI Bank as a lead manger for the fund raising. The newly-listed company from the JSW Group, which sells 70% of the power it generates in the open market through higher tariffs, is currently grappling with environmental issues in Ratnagiri and Chhattisgarh. A public hearing with the local populace in Chhattisgarh is scheduled for August 7. Currently, JSW Energy has an operational capacity of about 1,000 mw and targets to generate more than 11,000 mw in five years, of which a major portion will be sold in the open market at spot price to boost profits, according to company officials. Source: The Economic Times