The National Company Law Tribunal (NCLT) in Hyderabad has approved JSW Energy’s revival plan for KSK Mahanadi Power Company Ltd (KPMCL), a bankrupt company with liabilities of over ₹32,335 crore. The approval was given subject to clearance from the Competition Commission of India. JSW Energy’s offer of ₹15,985 crore is significantly lower than KPMCL’s admitted liabilities. The company has been struggling to pay its debts, with power finance corporation filing an application for insolvency proceedings in November 2019. The company is still operational, with 1,800 MW of its 3,600 MW capacity already operational, with the remaining capacity under construction.
The approval of the revival plan would see JSW Energy acquiring a 26% equity stake in KPMCL and paying an additional ₹100 crore to operational creditors. This deal would increase JSW Energy’s locked-in thermal generation capacity to 7.5 GW and its total locked-in generation capacity to 28.2 GW. KPMCL’s power plant in Chhattisgarh uses domestically sourced coal and has power purchase agreements for 95% of its operational capacity. The deal is a significant win for JSW Energy, and it would help the company increase its capacity and presence in the power sector.