JSW Energy shares jump over 4% after receiving letter of intent to acquire Mahanadi thermal plant
JSW Energy jumped 4.39% to Rs 540.50 in early trade on Tuesday after the company successfully emerged as the applicant to acquire KSK Mahanadi Power Company, which owns 3,600 MW of thermal power plants, under insolvency proceedings.
According to a company statement, this follows the approval of the Committee of Creditors, with the transaction pending regulatory approvals from the National Company Law Tribunal and the Competition Commission of India.
JSW Energy has received a Letter of Intent (LoI) from the Resolution Professional for its resolution plan submitted under the Insolvency and Bankruptcy Code, 2016, for KSK Mahanadi Power Company Ltd (KMPCL).
KMPCL owns a 3,600 MW thermal power plant in Chhattisgarh. Currently, 1,800 MW (600 MW x 3 units) is operational, with 95% of the capacity tied up in long- and medium-term power purchase agreements. An additional 1,800 MW (600 MW x 3 units) is under construction, with one unit (600 MW) 40% completed and the remaining plant infrastructure in place for the remaining 1,200 MW. The plant has secured arrangements for water and coal transportation for the entire 3,600 MW capacity.
With this acquisition, JSW Energy's total thermal generation capacity increases to 7.5 GW, and its total generation capacity rises to 28.2 GW. This brings JSW Energy closer to achieving its target of 20 GW well before 2030.
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