Solar-Wind Power Generation Company Receives Letter of Intent for 3.6 GW KSK Mahanadi Thermal Power Plant
The stock is up by 19.4 per cent from its 52-week low of Rs 451.80 per share.
JSW Energy Limited has been declared a successful applicant and has received a letter of intent (LoI) from the Resolution Professional for its resolution plan submitted for KSK Mahanadi Power Company Limited (“KMPCL”) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016. This follows the approval by the Committee of Creditors, with the closure of the transaction subject to the necessary regulatory approvals from the National Company Law Tribunal and the Competition Commission of India.
KMPCL owns a 3,600 MW thermal power plant, utilising domestic coal and located in the state of Chhattisgarh. Presently, 1,800 MW (600 MW x 3 units) is operational which is 95 per cent tied up under long & 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 per cent completed and the balance of the plant is in place for the remaining 1,200 MW. The plant has a firm arrangement for water and coal transportation for the entire 3,600 MW.
Subsequent to this the company's total locked-in thermal generation capacity stands at 7.5 GW and total locked-in generation capacity stands at 28.2 GW. This positions JSW Energy to achieve its target of 20 GW significantly before 2030 and is committed to a net zero target by 2050.
Mr Sharad Mahendra, Joint Managing Director and CEO of JSW Energy said: “I am pleased to share a significant milestone in our company's journey as we receive the letter of intent for the 3,600 MW KSK Mahanadi thermal power plant. This strategic move positions us to address the increasing energy needs of our nation through a diversified energy mix, integrating both conventional and renewable sources. Strategically located near a coal block, the plant boasts PPA tie-ups and efficient operations, ensuring a reliable power supply. As we move forward, we will continue to explore new opportunities and strive to remain at the forefront of the energy sector.”
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About JSW Energy Ltd
JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USD 24 billion JSW Group which has a significant presence in sectors such as steel, energy, infrastructure, cement, and sports among others. JSW Energy Ltd has established its presence across the value chains of the power sector with diversified assets in power generation, and transmission. With strong operations, robust corporate governance and prudent capital allocation strategies, JSW Energy continues to deliver sustainable growth and create value for all stakeholders. JSW Energy began commercial operations in 2000, with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka.
Since then, the company has steadily enhanced its power generation capacity from 260 MW to 7,740 MW having a portfolio of Thermal 3,508 MW, Wind 2,166 MW, Hydel 1,391 MW and Solar 675 MW ensuring diversity in geographic presence, fuel sources and power off-take arrangements. The Company is presently constructing various power projects to the tune of 2.1 GW, with a vision to achieve a total power generation capacity of 20 GW before the year 2030
The company has a market cap of over Rs 90,000 crore and has been maintaining a healthy dividend payout of 27.5 per cent. As of September 2024, the Life Insurance Corporation of India (LIC) owns a 7.16 per cent stake. The stock is up by 19.4 per cent from its 52-week low of Rs 451.80 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.