Sajjan Jindal’s JSW Group has expressed interest in picking up a significant stake in Andal airport to redevelop the state’s only greenfield airport in partnership with the Bengal government and Singapore’s Changi Airport.
The $24-billion conglomerate, which is a major player in core industries such as steel, energy, cement, port and automobile, has kicked off discussions with the existing private investors for the buyout.
If successful, this would be the first foray of the $24-billion JSW group in the airport sector, further deepening its engagement with Bengal. “It is a very exciting project. We are very keen,” Sajjan Jindal, chairman of the JSW group, said at the sidelines the 8th edition of the Bengal Global Business Summit.
The state owns a 26 per cent stake in Bengal Aerotropolis Projects, while Changi Airport Authority has a 33 per cent. Private investors led by city-based industrialist Utsav Parekh and the IL&FS group hold a 36 per cent and an 8 per cent stake, respectively, which the JSW group is looking to buy out.
Jindal pointed out that there is scope to develop the airport and the land around it where an industrial park and township can come up. “We want to build a world class aerotropolis there. It has a very large catchment area and lots of potential,” he added.
Conceived during the Left Front government, which acquired close to 1,800 acres in Burdwan for the greenfield airport, the investment in the project stands about ₹800 crore, including debt. Initially a non-starter, the airport now has multiple direct flights connecting various state capitals.
Jindal pointed out that he was keen that Changi, a global leader in airport management, remains in the company, along with the West Bengal Industrial Development Corporation. However, there are certain issues with the land, which needs to be resolved, Jindal cautioned. “We want a clean slate,” he emphasised.
Power play
During his public address at BGBS, Jindal announced that JSW Energy will build a 1,600 (800X2) megawatt coal-fired plant at an investment of ₹16,000 crore and develop a 2,000-acre industrial park at Salboni, West Midnapore.
“We plan to build the power plant in four years,” Jindal later said, adding that it would procure coal from Coal India through the Bengal government and sell the electricity back to the state. JSW came up as the lowest bidder to offer power to the state discom on a finance, own and operate basis. Jindal said JSW would be ready to double power capacity should the state need it.
While the power plant would require 1,000 acres, the rest will be used for the industrial park. “We would like to bring the Japanese and Koreans there, among others,” he said.
