JSW Energy to acquire KSK Mahanadi Power for Rs 15,985 crore – EQ
In Short : JSW Energy is set to acquire KSK Mahanadi Power for ₹15,985 crore, marking one of the significant deals in the Indian power sector. This acquisition will enhance JSW Energy’s capacity and strengthen its position in the energy market. The move aligns with the company’s strategy to expand its footprint in the thermal power segment while exploring growth in renewable energy.
In Detail : JSW Energy Limited has received the Letter of Intent (LoI) for its resolution plan to acquire KSK Mahanadi Power Company Limited (KMPCL). The announcement comes after the approval by KMPCL’s Committee of Creditors under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016. The closure of the transaction is now subject to regulatory clearances from the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI).
JSW Energy offered Rs 15,985 crore to financial creditors, outbidding Adani Power and NTPC. Adani Power was the second highest bidder with Rs 15,885 crore. The Chattisgarh-based coal-based power company owed Rs 32,248 crore to the creditors including Rs 29,400 crore to financial creditors.
KSK Mahanadi Power Company Limited owns a 3,600 MW thermal power plant in Chhattisgarh, of which 1,800 MW (three units of 600 MW each) is operational, with 95% of its capacity secured under long- and medium-term power purchase agreements (PPAs). The remaining 1,800 MW is under construction, with one unit at 40% completion and infrastructure in place for the remaining 1,200 MW. The plant benefits from a secured supply chain for water and coal transportation for its full capacity.
With this acquisition, JSW Energy’s total thermal power capacity increases to 7.5 GW, contributing to a total locked-in generation capacity of 28.2 GW. The move accelerates the company’s progress toward achieving its 20 GW target well before 2030, reinforcing its commitment to a diversified energy portfolio and a net-zero goal by 2050.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed optimism about the acquisition, stating:
“I am pleased to share this significant milestone in our company’s journey. The acquisition of the 3,600 MW KSK Mahanadi Power strategically positions us to meet India’s growing energy demands through a diversified mix of conventional and renewable energy. The plant’s proximity to a coal block, established PPAs, and efficient operations ensure reliable power supply and long-term value creation.”
JSW Energy, part of the $24 billion JSW Group, is one of India’s leading private-sector power producers. With a robust presence across the power sector value chain, the company operates 7,864 MW of diversified power generation capacity, including thermal, wind, hydel, and solar energy assets. JSW Energy continues to expand, with 8.3 GW of projects under construction, and remains on track to achieve a 20 GW capacity by 2030.
This acquisition marks another step in JSW Energy’s mission to provide sustainable energy solutions while maintaining strong governance and creating long-term value for stakeholders.
