Key facts
- JSW Energy acquired 100% equity shares of Maruti Clean Coal & Power Limited (MCCPL).
- The acquisition was completed for an enterprise value of Rs 1,410 crore.
- MCCPL operates a 300 MW thermal power plant in Korba, Chhattisgarh.
- The acquired plant has a residual PPA life of approximately 14 years for 195 MW (net).
- JSW Energy aims to achieve a 30GW capacity target by 2030 with this acquisition.
JSW Energy Limited has finalized an agreement to acquire 100% of Maruti Clean Coal & Power Limited (MCCPL) from Kolahai Infotech Private Limited and SFI Parcel Services Private Limited. The transaction, valued at an enterprise value of Rs 1,410 crore, will make MCCPL a wholly owned subsidiary of JSW Energy.
MCCPL operates a 300 MW thermal power plant located in Korba, Chhattisgarh. The plant has a long-term Power Purchase Agreement (PPA) for 195 MW (net) with electricity distribution companies in Rajasthan, with approximately 14 years of residual PPA life remaining. The remaining capacity is sold in the merchant market.
JSW Energy views this acquisition as a strategic move to enhance its thermal power portfolio and support its objective of reaching 30 GW of capacity by 2030. MCCPL has been profitable since its inception, and JSW Energy anticipates increased earnings and net profit from the acquired asset. The company also expects to realize savings through optimization in logistics and operations and maintenance costs, contributing to financial resilience.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, stated that the acquisition aligns with their disciplined approach to pursuing value-accretive inorganic opportunities. He highlighted that MCCPL is an earnings-accretive asset from day one, strengthening both the thermal portfolio and cash flows.
The proximity of MCCPL's plant to JSW Energy's existing Mahanadi thermal plant is expected to facilitate seamless integration with their current infrastructure in the region. Following this acquisition, JSW Energy's total installed and locked-in thermal capacity will increase to 5,958 MW and 10,958 MW, respectively. The company's overall locked-in generation capacity stands at 32.1 GW, with 13.9 GW operational and 13.6 GW under construction across thermal, hydro, and renewable sources, plus an additional 4.6 GW in the pipeline.