JSW Energy Set To Acquire Bankrupt KSK Mahanadi Power; Gets Letter Of Intent
The development came after KSK Mahanadi Power’s creditors declared JSW Energy as successful applicant and approved its resolution plan
(The Corner Office Journal) -- JSW Energy Ltd. is set to acquire KSK Mahanadi Power Company Ltd. as the company received a letter of intent from the bankrupt firm’s resolution professional.
The development came after KSK Mahanadi Power’s committee of creditors declared JSW Energy as successful applicant and approved its resolution plan, the Indian power producer said in a stock exchange announcement.
JSW Energy received the letter of intent to acquire KSK Mahanadi Power from its resolution professional today (13 January). It didn’t disclose the financial details.
In October 2024, the Economic Times reported that JSW Energy offered 15,985 crore rupees ($1.85 billion) to KSK Mahanadi Power’s financial creditors, emerging as the top bidder in an auction.
The transaction is subject to the approvals from the National Company Law Tribunal and the Competition Commission of India.
Megawatt Boost
The power generation capacity of JSW Energy, a part of JSW Group, will get a boost following the acquisition of KSK Mahanadi Power due to the addition of 3,600-megawatt (MW) capacity.
“Strategically located near a coal block, the plant boasts PPA (power purchase agreement) tie-ups and efficient operations, ensuring a reliable power supply,” JSW Energy Joint Managing Director and Chief Executive Officer Sharad Mahendra said.
KSK Mahanadi Power owns a 3,600-MW thermal power plant located in the state of Chhattisgarh. Presently, 1,800-MW (600-MW x 3 units) is operational, which is 95% tied-up under long and medium-term power purchase agreements.
An additional 1,800-MW (600-MW x 3 units) is under-construction, out of which, one unit (600 MW) is 40% completed and other units remain under construction.
The plant has a firm arrangement for water and coal transportation for the entire 3,600-MW, according to the statement.
JSW Energy said following the latest development, the company's total locked-in thermal generation capacity stands at 7.5-gigawatt (GW) and total locked-in generation capacity stands at 28.2-GW.
Note: $1 = 86.2002 Indian rupees
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