JSW Energy’s Kamalanga purchase underscores juicy bets in Indian power sector
Mumbai: India’s thermal power sector may be on a decline but for investors willing to place tactical bets, it continues to offer invaluable opportunities.
A case in point is JSW Energy Ltd’s acquisition of 1,050 megawatt (MW) thermal power plant in Odisha, owned and operated by GMR Kamalanga Energy Ltd – a unit of GMR Energy Ltd.
The company plans to purchase the power plant at an enterprise value of ₹5,321 crore. Around 84% of the plant’s capacity is tied-up under long term power purchase agreement (PPA) which assures revenue visibility. The plant, which is operational, has fuel linkage for the tied-up capacity and is situated in proximity to Coal India Ltd’s mines.
