After Buying GMR’s Coal-Fired Plant, JSW Energy To Focus On Renewable Assets 

JSW Energy Ltd.’s considers the acquisition of Kamalanga power unit in Odisha from GMR Group an optimal fit with its strategy of acquiring assets with low power generation costs.

Billionaire Sajjan Jindal group company agreed to buy the coal-fired plant at an enterprise of Rs 5,321 crore. That involves taking on Rs 3,951-crore of existing debt, an upfront cash payment of Rs 755 crore and the remaining Rs 615 crore payable on achieving certain milestones. The deal, expected to be completed by March, will be funded by debt and internal accruals.

The acquisition of the 1,050 MW GMR Kamalanga Energy Ltd. will take the JSW Energy’s capacity to 5,609 MW. The company aims to become a 10-gigawatt company over three to five years, Prashant Jain, Joint managing director and chief executive officer at JSW Energy, told BloombergQuint in an Interview. It will now focus on renewable assets that will contribute half of its target capacity.

The Kamalanga plant reported Rs 2,195 crore as revenue from operations in the year ended March 2019. “We are confident of achieving more-than-normative equity return post the acquisition,” Jain said.

The deal was announced after the market hours on Monday. The company’s shares surged as much as 6 percent in early hours on Wednesday.