Transaction Details

JSW Energy Limited has signed a definitive agreement with Kolahai Infotech Private Limited and SFI Parcel Services Private Limited to acquire 100% equity shares of Maruti Clean Coal and Power Limited (MCCPL).

Asset Description

MCCPL owns and operates a 300 MW thermal power project located in Korba, Chhattisgarh, India. The plant was incorporated on 8th March 1999 under the Companies Act 1956.

Financial Consideration

The transaction is valued at an enterprise value of ₹1,410 crores, subject to customary closing adjustments for cash. The consideration will be paid in cash.

Operational and Financial Metrics of Target

  • Capacity: 300 MW thermal power plant
  • Power Purchase Agreements:
  • 195 MW (net) long-term PPA with Rajasthan discoms (routed through PTC India) with ~14 years residual life
  • 5% power at variable cost to Chhattisgarh discom
  • ~64 MW sold in merchant market
  • Fuel Supply: Long-term Fuel Supply Agreement with SECL under SHAKTI scheme
  • Revenue from Operations:
  • FY 2023-24: ₹789 crores (audited)
  • FY 2024-25: ₹754 crores (audited)
  • FY 2025-26: ₹787 crores (unaudited)
  • FY26 EBITDA: Approximately ₹279 crore

Strategic Rationale

The acquisition supports JSW Energy's target to reach 30 GW capacity by FY 2030. It strengthens the company's thermal capacity expansion, is EBITDA and PAT-accretive, reduces net leverage, and strengthens balance sheet resilience. Potential upside exists through optimization of logistics and O&M costs, and synergies with JSW's existing Mahanadi thermal plant.

Conditions and Approvals

The transaction is subject to receipt of necessary regulatory approvals and customary conditions under the definitive agreement. Major approvals required include:

  • Approval from Government of Chhattisgarh for transfer of CSIDC land
  • Approval from existing lenders

Timeline

The transaction envisages a Long Stop Date of 31st July 2026, subject to fulfilment of Conditions Precedent.

Corporate Structure Impact

Upon consummation, MCCPL will become a wholly-owned subsidiary of JSW Energy Limited.

Current Portfolio Context

JSW Energy currently operates 5,658 MW of thermal capacity with 3,200 MW under construction at Salboni and 1,800 MW brownfield expansion pipeline at Mahanadi. Post-acquisition, total installed thermal capacity will reach 5,958 MW and locked-in thermal capacity will reach 10,958 MW.

Overall Capacity Overview

JSW Energy's total locked-in generation capacity is 32.1 GW (13.9 GW operational, 13.6 GW under construction) across thermal, hydro, and renewables, with a pipeline of 4.6 GW. The company has 29.6 GWh of locked-in energy storage capacity.

Advisors

For this transaction, JSW Energy was advised by:

  • Legal Advisor: Khaitan & Co
  • Financial and Tax Due Diligence: BDO India
  • Land Due Diligence: Roots Legal

Related Party Transaction

The acquisition does not fall within related party transactions. Promoter/promoter group/group companies have no interest in the entity being acquired.