New Delhi: JSW Energy on Monday announced it has emerged as a successful applicant to acquire KSK Mahanadi Power Company, which owns 3,600 MW thermal power plants, under insolvency proceedings.
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 Competition Commission of India, a company statement said.
JSW Energy has been declared a successful applicant and received a letter of intent (LoI) from the Resolution Professional for its resolution plan submitted for KSK Mahanadi Power Company Ltd (KMPCL) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016, it added.
KMPCL owns a 3,600 MW thermal power plant located in Chhattisgarh.
Presently, 1,800 MW (600 MW x 3 units) is operational, which is 95 percent 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 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 the total locked-in generation capacity stands at 28.2 GW. This positions JSW Energy to achieve its target of 20 GW significantly before 2030.
JSW Energy Joint Managing Director and CEO Sharad Mahendra said, "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".
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