JSW Energy set to buy Jaiprakash Power thermal power plant

Could pay about Rs 3,500 crore for the 500 megawatt power plant

JSW Energy Ltd is set to announce it will buy a power plant in Madhya Pradesh from debt-burdened Jaiprakash Power Ventures Ltd , a source with direct knowledge of the deal said, as it boosts power capacity.

The companies could announce the early stage agreement - for the purchase of the Bina power plant, in the state of Madhya Pradesh - as early as Tuesday, the source said, declining to give a deal value.

The Economic Times newspaper earlier on Tuesday reported JSW could pay about Rs 3,500 crore ($525 million) for the 500 megawatt power plant.

A spokeswoman for the Jaiprakash group declined comment, saying they would issue a statement later on Tuesday.