Salboni power plant

From Global Energy Monitor

Salboni power plant is a proposed 660-megawatt (MW) coal-fired power project of JSW Energy (Bengal) Limited (JSWEBL). The plant has been proposed to be built in West Bengal, India, at the site of JSW Steel's proposed 10 million tonne integrated steel project.


The project is proposed for Salboni in West Bengal. The map below shows the location of Salboni but not the exact location of the project.

Loading map...


JSW Energy (Bengal) Limited (JSWEBL) is a special purpose vehicle between JSW Bengal Steel Limited (JSWBSL) (26%) and JSW Energy (74%). Both are divisions of JSW Group, which in turn is part of Jindal Group.

In 2007, JSW Energy signed a development agreement with the Left Front government to build a 10 million tonne steel plant and a 1600 MW captive coal-fired power plant. The total investment in the project was to be around Rs 35,000 crore. That plan failed due to problems with the land lease after the Mamata Banerjee government took charge and problems associated with the Coalgate scandal and deallocation of coal blocks by the Supreme Court. In 2014 the West Bengal government cancelled the power purchase agreement.[1]

In 2008 JSW Steel was granted environmental clearance (EC) for a 3 million tonne per annum steel plant and 300 MW captive power plant, later transferred to JSW Energy (Bengal) Limited. The EC expired in 2013. JSW applied for a new terms of reference in April 2015, which was granted in June 2015.[2]

In June 2010 JSW proposed that the plant comprise two 800MW units, with the first unit commissioned in March 2014 and the second unit in September 2014.[3]

However, the following year the company was proposing a different configuration. In its 2011 annual report, JSW Energy states that it "proposes to set up a 300 MW power plant in the 1st phase and 1,320 MW captive power plant in the subsequent phases to meet the power requirement of JSWBSL’s projects as a Captive Power Plant (CPP). A part of the surplus power is proposed to be sold to West Bengal State Electricity and Distribution Company Limited (WBSEDCL) for which JSWEBL has entered in to a Power Purchase Agreement with WBSEDCL on 29th December, 2010 subject to the approval of West Bengal Electricity Regulatory Commission and balance power is proposed to be sold on merchant basis."[4]

In January 2012, the size of the proposed project was referred to as comprising just two 660 MW supercritical units. In a presentation to investors, JSW Energy stated that the land for the project had been acquired and that a supplementary agreement with West Bengal State Electricity and Distribution Company had been signed for 40% of the output from units 2 & 3.[5]

A January 2012 presentation to investors announced that Phase I (300 MW) was being transferred to JSW Bengal Steel Ltd. to enable JSW Bengal Steel to set up a captive power plant (subject to consents).[5] An investor presentation by JSW Steel mentions a 300 MW captive thermal power plant -- referred to as CPP-IV -- and states that the completion date is FY12 end.[6]

In November 2013 it was reported that the integrated steel plant by JSW Bengal was failing to take off, as the company was unable to get iron-ore linkages for the steel project. JSW Bengal said the company was advised by the state government to venture into power, and would begin construction on a 660 MW power station at the site in April, 2014. No mention was made of other proposed units.[7]

The environment and forest ministry had initially approved a 300MW power plant. The proposal to instead set up a 660MW unit requires new applications for environment clearance. Additionally, the coal mines allocated to the Jindals were meant to be used for steel only.[8]

In January 2014 JSW Energy (Bengal) Ltd. received a terms of reference for one 660 MW supercritical power plant.[9]

On December 1, 2014, JSW Chairman Sajjan Jindal said the company would put the Rs 35,000-crore project at Salboni on “hold” over uncertainty of raw material linkages. JSW Bengal do not have either coal or iron ore linkages for the Salboni project. JSW said it would surrender the 294 acres purchased directly from farmers for the project.[10]

In January 2016, JSW Energy received a new terms of reference for one 660 MW unit.[11] An EIA was submitted in September 2016. Coal would be imported, possibly from Indonesia, via the Haldia Port.[12]

In October 2016 JSW Group chairman Sajjan Jindal announced that the company would no longer build a steel plant at Salboni but instead would build a 2.4 million tonne cement plant and a 2,00,000 kilo litre paints factory. A downstream unit for cold rolled and galvanised might also be build along with a captive power plant of 18 MW[13]

Coal supply

The company states that it has "entered into long-term Coal Supply Agreement in March 2010 with West Bengal Mineral Development Corporation Limited (WBMDCL) for supply of coal from the Ichhapur coal block."[4]

Project Details

Sponsor: JSW Energy (Bengal) Ltd
Parent: two divisions of JSW Group: JSW Bengal Steel Limited (JSWBSL) (26%) and JSW Energy (74%); ultimate parent of JSW Group is Jindal Group
Location: near Salboni village, West Bengal
Coordinates: 22.641998, 87.32392 (approximate)
Status: Cancelled (Phase I); Cancelled (Phase II)

  • Phase I: initially 300 MW, now 660 MW
  • Phase II: 1,320 MW (2 x 660 MW)

Type: Supercritical
Projected in service:
Coal Type:
Coal Source: Imported (Indonesia, possible Australia or South Africa)[12]
Estimated annual CO2: 9,580,196 tons
Source of financing:
Permits and applications: Unit 1: Terms of Reference, India MoEF, January 7, 2014 (660 MW plant); Terms of Reference, India MoEF, June 23, 2015 (300 MW plant); Terms of Reference, India MoEF, January 20, 2016 (660 MW plant)

Resources and articles


  1. "JSW Stelel to set up cement, captive power plants in Bengal," Business Standard, 25 September 2015
  2. Terms of Reference, India MoEF, June 23, 2015
  3. "JSW Energy to commission 1600-Mw Salboni plant by 2014", Business Standard, July 6, 2010.
  4. 4.0 4.1 JSW Energy, "Annual Report 2011", JSW Energy, June 2011, page 15.
  5. 5.0 5.1 JSW Energy, "Energising India", Investor presentation, January 2012, page 20. (Pdf)
  6. "Analyst Meet Presentation Quarter Ended 31 Dec 2011," JSW Steel
  7. "JSW Bengal to commence Salboni project with power," Economic Times, Nov 15, 2013.
  8. "April start for JSW Salboni power plant," The Telegraph, Nov 15, 2013.
  9. Terms of Reference for 660 MW plant, India MoEF, January 7, 2014.
  10. "SW puts Salboni project on hold, returns land to farmers," Indian Express, Dec 16, 2014
  11. Terms of Reference, India MoEF, January 20, 2016
  12. 12.0 12.1 "EIA," JSW Energy Bengal, September 2016
  13. Ishita Ayan Dutt, "JSW Group to Invest Rs 3,400 crore in West Bengal," Business Standard, 19 October 2016

Related articles

Loading map...

External resources