JSW Energy has received approval from the Committee of Creditors to acquire a 3.6 GW coal-fired thermal power plant in Chhattisgarh, central India, from KSK Mahanadi Power Company for INR159.8bn (US$1.8bn). This acquisition entails an operational segment comprising three 600 MW units, totaling 1.8 GW, which are 95% secured under long and medium-term power purchase agreements (PPAs). In addition, 1.8 GW of the plant is still under construction, with 600 MW completed and the remaining 1.2 GW being finalized. This strategic move is anticipated to increase JSW Energy’s total thermal generation capacity to 7.5 GW, significantly enhancing the company’s portfolio. Additionally, it will raise JSW Energy’s overall capacity to 28.2 GW. The acquisition was part of the company’s resolution plan under the corporate insolvency process as stipulated by India’s Insolvency and Bankruptcy Code 2016.
Strategic Implications of the Acquisition
The acquisition is poised to establish JSW Energy as a key player in India’s thermal power industry by significantly boosting its thermal generation capacity. With most of its operational units secured under long and medium-term Power Purchase Agreements (PPAs), JSW Energy is positioned to benefit from reliable revenue streams. The completion of the remaining units will further enhance the company’s capacity and market share within the thermal power sector. This acquisition is in line with JSW Energy’s long-term objective to diversify its energy generation portfolio and strengthen financial stability through thoughtful investments. By increasing its capacity to 7.5 GW, JSW Energy is set to gain a competitive advantage in India’s growing energy market. This strategic move is likely to fortify its standing amidst competitors, ensuring sustained growth and stability for the foreseeable future.
