Prashant Jain, Joint MD & CEO of JSW Energy expects debt to reduce to Rs 7,000 crore by end of FY21. In an interview with CNBC-TV18, he said that that the debt reduction cycle was bottoming out.

“The deleveraging cycle is over and going forward our debt to EBITDA number will be increasing and therefore the return on net worth will also be increasing,” he said.

Jain said that they are expecting to be a 10 gigawatt power generation company in next 3-5 years’ timeframe. “810 megawatt of Solar Energy Corporation of India (SECI) order which we have received and in addition to that 240 megawatt of hydro project which we have undertaken. Apart from that we are exploring couple of group captive projects which are required for RPO obligation between JSW Group. In addition, we will be participating in further SECI bids and other distribution companies. So another 4-5 gigawatt capacity will be added from renewable sources in next 3-5 years’ timeframe,” he said.

He said that merchant prices were improving, but not up to expectations. However, he added that merchant sales should pick up in H2FY21.

(Edited by : Santosh Nair)