JSW Energy receives LoI for KSK Mahanadi Power resolution plan

14 Jan 2025 , 09:11 AM

JSW Energy Ltd announced on Monday (January 13) that it had been deemed the successful applicant for the resolution plan submitted for KSK Mahanadi Power Company Ltd (KMPCL) under the corporate insolvency resolution procedure (CIRP) of the Insolvency and Bankruptcy Code, 2016.

The resolution professional sent the company a letter of intent (LoI) after the Committee of Creditors approved the resolution plan. The transaction will not be completed until the National Company Law Tribunal and the Competition Commission of India get the requisite regulatory clearances.

KMPCL owns and operates a 3,600 MW thermal power station in Chhattisgarh that uses local coal. Currently, 1,800 MW (600 MW x 3 units) is operating, with 95% tied up in long- and medium-term power purchase agreements.

An further 1,800 MW (600 MW x 3 units) is under construction, with one unit (600 MW) now 40% completed and the remaining 1,200 MW in place. The facility has a firm plan for water and coal transportation for the entire 3,600 MW.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, stated, “The plant is strategically located near a coal block and boasts PPA tie-ups and efficient operations, ensuring a reliable power supply. As we move forward, we will continue to look for new opportunities and work to be at the forefront of the energy business.”

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