JSW Energy Says Business Rejig Likely To Be Completed In 6 Months
Renewables or green business will be housed in JSW Neo Energy, the thermal or grey business will be part of JSW Future Energy.
JSW Energy Ltd. expects the reorganisation of its renewable and thermal verticals to be completed within six months.
While the renewables or green business will be housed in JSW Neo Energy Ltd., the thermal or grey business will be part of JSW Future Energy Ltd.
The company plans to merge JSW Future Energy Ltd. with JSW Neo Energy Ltd., which awaits permission from the National Company Law Tribunal, Prashant Jain, joint managing director and chief executive officer at JSW Energy, told BloombergQuint.
The rejig is expected to be completed in this financial year, and possibly in the next six months, said Jain.
In the company's current portfolio of 7 GW, 55% comes from renewable power.
JSW Energy is “growth-oriented” and is also evaluating opportunities to unlock value, Jain said, without mentioning any specific options.
Tariff Cap Hurting Spot Power Demand
The volume of power sold through exchanges in the spot market has fallen even as India faces power outages because of a lower tariff cap of Rs 12 a unit introduced in April, according to Jain.
Short-term power purchase agreements require a minimum 20% tariff hike to offset inflationary pressures, Jain said.
Existing short-term PPAs will be unviable given that imported coal cannot generate profitable power at Rs 12 a unit, while domestic coal is even more expensive, he said.
Watch the full interview here: