The transaction carries an enterprise value of Rs 1,410 crore. It is expected to support JSW Energy’s growth strategy and aid in achieving its 30GW capacity target by 2030, according to a stock exchange filing. MCCPL’s FY26 EBITDA stood at about Rs 279 crore.
Read more: Big corporates plug into electric trucks as rising diesel and logistics expenses drive a rethink
The acquired company operates a 300 MW thermal power plant at Korba, Chhattisgarh. It has a long-term Power Purchase Agreement (PPA) of 195 MW (net) with electricity distribution companies in Rajasthan, routed through Power Trading Corporation of India, with a residual Power Purchase Agreement (PPA) life of approximately 14 years.
They also provide 5% power at variable cost to the Chhattisgarh electricity distribution company after which the remaining 64 MW capacity is sold in the merchant market.
MCCPL acquires its coal supply through a long-term Fuel Supply Agreement (FSA) with South Eastern Coalfields Limited (SECL), and a linkage under the SHAKTI scheme.
JSW Energy sees the acquisition as a positive as MCCPL has been profitable since its inception and its earnings and net profit is expected to increase, reducing JSW energy’s debt burden as well as savings through optimisation in logistics and O&M costs is expected to make the company financially resilient
“This acquisition reflects our disciplined ‘Build vs. Buy’ approach, where we pursue calibrated value accretive inorganic opportunities. MCCPL has an operating asset that is earnings accretive from day one, strengthening both our thermal portfolio and our cash flows.” said Sharad Mahendra, Joint Managing Director and CEO of JSW Energy.
The plant is also in close proximity to JSW Energy’s Mahanadi thermal plant, which would further help in seamless integration to their existing infrastructure in the region.
Read more: Reliance Industries-led consortium wins bid for 101-acre Mumbai slum redevelopment project
After the acquisition, JSW Energy’s total installed and locked-in thermal capacity will reach 5,958 MW and 10,958 MW respectively. The company currently has a total locked-in generation capacity of 32.1 GW, comprising 13.9 GW operational and 13.6 GW under construction across thermal, hydro, and renewables, with an additional 4.6 GW in the pipeline.
According to the company, this deal is expected to strengthen the regional thermal power operations.