JSW Energy rallied 4.08% to Rs 539.20 after the company said it has received letter of intent (LoI) for its resolution plan for KSK Mahanadi Power Company (KMPCL) under the Insolvency and Bankruptcy Code, 2016.
KMPCL owns a 3,600 MW thermal power plant, utilising domestic coal and located in 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 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 companys 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, the company said.
Sharad Mahendra, joint managing director and CEO of JSW Energy, 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. 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.
JSW Energy is primarily engaged in the business of generation of power, with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh), and Salboni (West Bengal).
The companys consolidated net profit marginally increased to Rs 853.25 crore in Q2 FY25 as against Rs 850.16 crore posted in Q2 FY24. Net sales marginally declined to Rs 3,237.66 crore in Q2 FY25 from Rs 3,259.42 crore reported in Q2 FY24.
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