JSW Energy Ltd. has signed a definitive agreement to acquire Maruti Clean Coal & Power Ltd. (MCCPL) for an enterprise value of ₹1,410 crore, strengthening its thermal power portfolio through an operating asset with long-term power supply arrangements.
The acquisition is from Kolahai Infotech Pvt. Ltd. and SFI Parcel Services Pvt. Ltd. Upon completion of the transaction, MCCPL will become a wholly-owned subsidiary of JSW Energy.
Operating asset with long-term PPA
MCCPL owns and operates a 300 MW thermal power plant at Korba in Chhattisgarh. The plant has a long-term power purchase agreement for 195 MW (net) with Rajasthan discoms, routed through PTC India, with a residual life of 14 years.
In addition, 5% of the power generated is supplied to the Chhattisgarh discom at variable cost, while the balance capacity of about 64 MW is sold in the merchant market.
Coal requirements for the plant are secured through a long-term fuel supply agreement with SECL and coal linkage under the SHAKTI scheme.
Leadership comment
“This acquisition reflects our disciplined ‘Build vs Buy’ approach, where we pursue calibrated value-accretive inorganic opportunities. MCCPL has an operating asset that is earnings accretive from day one, strengthening both our thermal portfolio and our cash flows,” said JSW Energy Joint Managing Director & CEO Sharad Mahendra.
Mahendra said the acquisition would support the company’s efforts to build a balanced portfolio while meeting rising energy demand.
Thermal capacity expands
JSW Energy currently operates 5,658 MW of thermal power capacity and is developing an additional 3,200 MW at its Salboni thermal power project. The company also has a pipeline of 1,800 MW of brownfield expansion at Mahanadi.
Following the acquisition, the company’s installed thermal capacity will increase to 5,958 MW, while its total installed and locked-in thermal capacity will reach 10,958 MW.
2030 growth target
JSW Energy has a total locked-in generation capacity of 32.1 GW, comprising 13.9 GW operational capacity, 13.6 GW under construction and a development pipeline of 4.6 GW across thermal, hydro and renewable energy assets.
The company also has 29.6 GWh of locked-in energy storage capacity, including 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage systems.
JSW Energy is targeting 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030 and has set a goal of achieving carbon neutrality by 2050.