JSW Energy shares in focus: 1,600 MW PPA signed, Salboni unit capacity doubles to 3,200 MW

JSW Energy shares are likely to remain in the spotlight on Wednesday following a massive capacity expansion in West Bengal.  The company’s overall locked-in generation capacity now stands at 32.1 GW, comprising 13.3 GW of operational assets and a substantial 14 GW under construction across its thermal and renewable portfolios.

On Tuesday, shares of JSW Energy slipped 1.43 per cent to close at Rs 479.70 on BSE.

In a late evening regulatory filing on Tuesday, the company announced that its wholly-owned subsidiary, JSW Thermal Energy Two Ltd, has signed a power purchase agreement (PPA) with the West Bengal State Electricity Distribution Company Ltd. 

The agreement is for a greenfield 1,600 MW (2 x 800 MW) super/ultra-super critical thermal power plant to be set up at Salboni, West Bengal, JSW Energy said.

This latest development marks the second PPA the power producer has signed with the West Bengal discom, following an earlier 1,600 MW agreement in March 2025. The new plant is slated to be commissioned within six years and will utilise domestic linkage coal allocated under the state’s policy.

The addition of this new project effectively doubles the capacity at the Salboni site to 3,200 MW, transforming it into the company’s largest single-location asset. 

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, highlighted the operational logic behind the expansion, noting that “The project benefits from its strategic proximity to coal blocks, as well as synergies with the existing 1,600 MW unit under construction, driving significant operational efficiencies”.

With this fresh contract, JSW Energy’s total secured thermal capacity is poised to reach 10,658 MW, with the company emphasizing that the entire incremental capacity will be fuelled by domestic coal. 

The company also informed exchanges on Tuesday that it has received ‘in-principle’ approval for a preferential issue of securities. The approval covers the issuance of over 95 lakh equity shares and 4.76 crore convertible warrants to JTPM Metal Traders Limited, a promoter group entity, for Rs 525 per instrument.

Earlier on January 15, the company had taken steps to secure the execution of its initial projects at the same site. JSW Thermal Energy Ltd entered into a contract with its associate firm, Toshiba JSW Power Systems Private Ltd, for the procurement of two steam turbine generators of 800 MW each for the first Salboni thermal project.