JSW Energy , through its wholly-owned subsidiary JSW Neo Energy Limited, has made a significant move in the renewable energy sector by signing a definitive agreement to acquire Tidong Power Generation Private Limited (TPGPL) from Statkraft IH Holding AS. This acquisition marks JSW Energy's fourth hydro asset, further solidifying its position as the largest private hydro power player in India.

Transaction Details

The enterprise value of the transaction is set at ₹1,728.00 crores, subject to closing adjustments. The deal includes a 150 MW under-construction hydro power project located in the Kinnaur district of Himachal Pradesh. This strategic acquisition aligns with JSW Energy's ambitious target of reaching 30 GW generation capacity by FY 2030.

Project Specifics

The Tidong hydro power plant is expected to be commissioned in October 2026. It comes with a 22-year Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Ltd for 75 MW capacity at a tariff of ₹5.57/KWh during the months of May to October. The remaining 75 MW capacity is currently untied and available for merchant market sales, providing flexibility in power distribution.

Regulatory Approvals and Timeline

The acquisition is subject to key approvals, including:

• Consent from the Government of Himachal Pradesh for the change in controlling shareholding
• Approvals from lenders

JSW Energy anticipates completing the acquisition by January 15, 2026, contingent on fulfilling the conditions outlined in the definitive agreements.

Impact on JSW Energy's Portfolio

Post-acquisition, JSW Energy's locked-in generation capacity will increase to 30.5 GW, with hydro capacity reaching 1.8 GW. This addition strengthens the company's renewable energy portfolio, supporting its goal of increasing the share of renewable energy generation to 70% by FY 2030.

Strategic Significance

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed enthusiasm about the acquisition, stating, "This acquisition further strengthens our position as the largest private hydro power player in India and reinforces our commitment to support India's power sector." He also highlighted the potential synergies with their existing Karcham-Wangtoo Hydro plant and the opportunity to leverage the expertise of the skilled manpower acquired through this deal for future pumped-hydro storage projects.

Seller's Perspective

Fernando de Lapuerta, Executive Vice President International at Statkraft, commented on the transaction, expressing confidence in JSW Energy's competence to develop and operate the Tidong hydropower plant, contributing to India's green energy transition.

Financial Advisors

The transaction involved several key advisors:

• Talwar Thakore & Associates served as legal advisors for JSW Neo Energy
• Grant Thornton conducted financial and tax due diligence
• Tractebel Engineering performed technical due diligence
• Ernst & Young acted as the sell-side M&A Banker
• Cyril Amarchand Mangaldas provided legal advice to Statkraft

This acquisition represents a significant step for JSW Energy in expanding its renewable energy footprint and advancing towards its sustainability goals in the Indian power sector.

JSW Energy Limited , a key player in India's power sector, has announced a significant corporate restructuring move that aims to bolster its manufacturing capabilities and reduce dependency on third-party suppliers. The company's Board of Directors has approved a scheme of arrangement for the demerger of GE Power India Limited's (GEPIL) Durgapur facility, which specializes in manufacturing power boiler components, pressure vessels, piping, and coal mills for thermal power plants.

Key Details of the Demerger

• Share Exchange Ratio: Shareholders of GE Power India will receive 10 shares of JSW Energy for every 139 shares held.
• Appointed Date: The scheme's appointed date is set for July 1, 2025.
• Regulatory Approvals: The scheme requires necessary regulatory approvals and no-objection letters from both BSE and NSE.

Strategic Rationale

JSW Energy's decision to acquire GEPIL's Durgapur facility is driven by several strategic considerations:

1. Vertical Integration: The acquisition secures a dedicated boiler parts manufacturing facility for JSW Energy.
2. Reduced Dependency: It will decrease the company's reliance on third-party suppliers for critical components.
3. Operational Synergies: The move is expected to create significant operational efficiencies and economies of scale.
4. Enhanced Control: JSW Energy will gain improved control over critical component requirements for its thermal power assets.
5. Future Growth: The acquisition aligns with JSW Energy's long-term vision of expanding its energy portfolio.

Financial and Operational Impact

While specific financial details of the Durgapur facility were not disclosed, the demerger is expected to have a positive impact on JSW Energy's operations. The company anticipates that this strategic move will lead to cost efficiencies and improved production capacity to support its future thermal projects.

Governance and Valuation

The share entitlement ratio for the demerger was determined by registered valuers GT Valuation Advisors Private Limited and RBSA Valuation Advisors LLP. An independent SEBI-registered Category-I Merchant Banker, 3Dimension Capital Services Limited, has confirmed the fairness of the consideration.

Next Steps

The scheme of arrangement will be filed with BSE Limited and National Stock Exchange of India Limited to obtain their 'No Objection Letter' as per regulatory requirements. JSW Energy has also signed a Demerger Co-operation Agreement (DCA) with GEPIL, outlining the process for effecting the transaction and the rights and obligations of both parties.

Conclusion

This strategic demerger represents a significant step for JSW Energy in strengthening its position in the power sector. By integrating GEPIL's Durgapur facility, JSW Energy aims to enhance its manufacturing capabilities, improve operational efficiency, and create long-term value for its shareholders. As the power sector continues to evolve, such strategic moves could play a crucial role in shaping the competitive landscape of India's energy market.