Indian power company JSW Energy has received approval from the Committee of Creditors to acquire KSK Mahanadi Power Company's 3.6GW coal-fired thermal power plant in Chhattisgarh, India.

The acquisition is part of the company's resolution plan under the corporate insolvency process of the Insolvency and Bankruptcy Code 2016.

The operational segment of the plant comprises three units, with a combined capacity of 1.8GW, which are 95% secured under long and medium-term power purchase agreements.

The remaining 1.8GW is under construction, with 600MW (40%) complete and the balance of plant ready for the final 1.2GW.

The move is expected to boost JSW Energy's thermal generation capacity to 7.5GW and its total capacity to 28.2GW.

JSW Energy joint managing director and CEO Sharad Mahendra stated: “I am pleased to share a significant milestone in our company's journey as we receive the letter of intent for the 3.6GW KSK Mahanadi thermal power plant. 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.”

The company, a subsidiary of the $24bn JSW Group, has grown its generation capacity from 260MW in 2000 to 7.86GW, featuring a mix of thermal, wind, hydel [hydro-electric] and solar assets.

The acquisition is a step towards JSW Energy's goal of achieving 20GW capacity by 2030 to reach a net zero target by 2050.