In a strategic move that reinforces its leadership in India’s power sector, JSW Energy Ltd (JSWEL) has secured approval from the Competition Commission of India (CCI) for its acquisition of KSK Mahanadi Power Company Ltd (KMPCL). The deal size is nearly ₹16,000 crore and CCI approval comes on the heels of National Company Law Tribunal (NCLT) approving the resolution plan submitted by JSW Energy.
The transaction, executed through JSW Thermal Energy One Ltd —a newly formed wholly owned subsidiary of JSWEL—marks a significant expansion of the company’s thermal power footprint.
JSW Energy, a publicly listed entity with an extensive presence across power generation, transmission, trading, and coal mining, is positioning itself for long-term growth by acquiring KMPCL, which operates a substantial 3,600 MW thermal power plant in Chhattisgarh’s Janjgir-Champa district.
KMPCL has been undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, making this acquisition a critical turnaround effort in India’s distressed power sector.
Expansion strategy
This move aligns with JSW Energy’s broader expansion strategy, leveraging its financial strength and operational expertise to integrate and optimise underperforming assets. The acquisition provides the company with access to large-scale thermal power capacity, boosting its ability to meet rising energy demands in the country. It also demonstrates JSWEL’s confidence in India’s evolving power market, where thermal energy remains a critical component despite the accelerating push for renewables.
JSW Thermal Energy One Ltd, incorporated in October 2024 specifically to facilitate this transaction, currently does not have any independent business operations. This acquisition, therefore, represents its first major foray into the power generation space, with KMPCL’s assets providing an immediate and substantial boost to JSW Energy’s production capacity.
Fair market competition
The detailed order from the CCI is expected to follow, outlining the specific terms of the approval. However, the green light from India’s competition watchdog signals that the transaction is in line with regulatory considerations, ensuring fair market competition while enabling consolidation in the sector.
With this acquisition, JSW Energy is poised to strengthen its dominance in the conventional power segment while continuing its broader strategy of balancing its portfolio with renewable investments.
As the power sector navigates the complexities of energy transition, JSWEL’s aggressive expansion underscores its intent to remain a formidable player in India’s electricity market, economy watchers said.