The energy ministry of Botswana has declared Jindal Steel and Power (JSPL) as the preferred bidder in a tender to build a 300-megawatt (MW) coal-fired power plant. Jindal was among the companies to bid for the only fossil fuel-based power plant that the Southern African’s landlocked country is planning to procure in the next two decades.
Initially, four companies were competing for the 300 megawatts (MW) coal-fired power plant contract, however, one of them backed out leaving Jindal, African Energy Resources, and Minergy in the race.
The energy ministry notice said, the contract (is) for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life of a 300MW net greenfield coal-fired power plant in Botswana as an Independent Power Producer,” reported by Reuters.
Under the project, Jindal will be financing the plant and recouping its investments from selling electricity to the Botswana Power Corporation (BPC) under the terms to be negotiated between the two parties.
Although Jindal Botswana country head Neeraj Saxena did not respond to Reuters query on the latest development, in November 2021, the company had told the news agency that they would start building a coal mine in south-eastern Mmamabula coalfields in 2022 aiming to supply the export market and the planned coal power plant.