JSW Energy , a prominent player in the Indian power sector, faced a setback as the Supreme Court ruled in favor of the Himachal Pradesh government in a dispute over free power supply involving its subsidiary. The case, which centered around the obligation of free power supply, has significant implications for the company's operations in the state.

Key Highlights of the Supreme Court Decision

• The Supreme Court allowed the appeal filed by the State of Himachal Pradesh against JSW Hydro Energy Limited (JSWHEL), a material step-down subsidiary of JSW Energy.
• The court set aside the previous judgment of the Himachal Pradesh High Court, which had capped the free electricity supply to the home state at 13%.
• The Supreme Court's decision upholds the original requirement of 18% free power supply as mentioned in the Implementation Agreement.

Background of the Dispute

The legal battle stemmed from a disagreement over the quantum of free power that JSW Energy's subsidiary was obligated to supply to Himachal Pradesh. The case had previously been heard by the Himachal Pradesh High Court, which had ruled in favor of JSW Hydro Energy Limited, reducing the free power supply obligation from 18% to 13%.

Implications for JSW Energy

This ruling is expected to have financial implications for JSW Energy and its subsidiary. The company will now be required to supply a higher percentage of free power to the state of Himachal Pradesh, potentially impacting its revenue from power generation projects in the region.

Company's Disclosure

In compliance with regulatory requirements, JSW Energy Limited disclosed this material litigation update to the stock exchanges. Monica Chopra, Company Secretary of JSW Energy, signed the official communication informing stakeholders about the Supreme Court's decision.

Conclusion

The Supreme Court's ruling marks a significant development in the ongoing dialogue between power producers and state governments regarding energy agreements. It underscores the importance of adhering to original contractual obligations in the power sector, potentially setting a precedent for similar cases in the future.

Investors and stakeholders of JSW Energy will be closely watching how this decision affects the company's financial performance and its relationships with state governments in other power projects.

JSW Energy , a leading player in India's power sector, has achieved a significant milestone in its sustainability journey. The company has been included in FTSE Russell's prestigious FTSE4Good Index Series, a global benchmark that measures the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices.

ESG Performance Recognition

The inclusion in the FTSE4Good Index Series is a testament to JSW Energy's commitment to sustainable business practices and responsible corporate governance. This index is widely used by investors to create or assess sustainable investment funds and other products, making JSW Energy an attractive option for ESG-focused investors.

Ambitious Sustainability Goals

JSW Energy has set its sights on ambitious sustainability targets:

• Carbon Neutrality: The company aims to achieve carbon neutrality by 2050, aligning with global efforts to combat climate change.
• Capacity Expansion: JSW Energy plans to significantly scale up its generation capacity to 30 GW by FY2030, focusing on clean and renewable energy sources.

Recent Power Purchase Agreement

In a move that further solidifies its commitment to renewable energy, a subsidiary of JSW Energy has recently entered into a significant long-term agreement:

• Contract Details: Signed a 25-year Power Purchase Agreement (PPA) with NHPC.
• Capacity: The agreement covers 300 MW of solar-wind hybrid capacity.
• Significance: This PPA underscores JSW Energy's focus on diversifying its renewable energy portfolio and contributing to India's clean energy targets.

The inclusion in the FTSE4Good Index, coupled with its ambitious sustainability goals and recent renewable energy agreements, positions JSW Energy as a frontrunner in the transition towards a more sustainable and environmentally responsible energy sector in India.