JSW Energy has successfully acquired the bankrupt KSK Mahanadi Power Company under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016. The acquisition was finalised after JSW Energy offered Rs 15,985 crore to the company’s financial creditors, outbidding competitors Adani Power and NTPC. KSK Mahanadi, based in Chhattisgarh, operates a 3,600 MW thermal power plant, which uses domestic coal for generation. Currently, 1,800 MW (comprising three 600 MW units) is operational and fully contracted under long- and medium-term power purchase agreements (PPAs). An additional 1,800 MW (three 600 MW units) is under construction, with one unit 40% complete, and preparations are in place for the remaining 1,200 MW. The plant has secure arrangements for coal and water supply for the full 3,600 MW capacity.

KSK Mahanadi entered the debt resolution process in 2020 after defaulting on payments, with claims amounting to Rs 29,330 crore from its lenders. Various banks, including the State Bank of India, transferred their loans to asset reconstruction companies to recover their dues. The plant’s financial troubles were worsened by inadequate coal supplies. Following the acquisition, JSW Energy’s total thermal generation capacity now stands at 7.5 GW, with a total locked-in generation capacity of 28.2 GW. This acquisition places JSW Energy on track to meet its 20 GW target by 2030 and aligns with its commitment to achieving net-zero emissions by 2050.