JSW Energy Secures Power Purchase Agreement with WBSEDCL for Salboni Thermal Project Expansion

JSW Energy has announced a new agreement through its subsidiary, JSW Thermal Energy Two Ltd. This agreement with the West Bengal State Electricity Distribution Company (WBSEDCL) involves supplying power from a 1,600 MW thermal project in Salboni, West Bengal. The plant will use domestic coal allocated to the state, according to a company statement.

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The project will be developed as a greenfield 1,600 MW super/ultra-supercritical thermal power plant. It is expected to be operational within six years. This development follows a competitive bidding process initiated by WBSEDCL. The agreement marks the second Power Purchase Agreement (PPA) between JSW Thermal Energy Two Ltd and WBSEDCL, following an earlier 1,600 MW PPA signed in March 2025.

JSW Energy's Expanding Capacity

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed satisfaction with the new agreement. "I am pleased to announce the signing of our second 1,600 MW PPA with WBSEDCL for a thermal power project at Salboni, increasing our total capacity at the site to 3,200 MW. This makes Salboni our largest single-location asset and reinforces our commitment to India’s energy security through the supply of reliable and affordable power," Mahendra stated.

The strategic location of the Salboni project offers significant advantages. Its proximity to coal blocks and synergies with an existing 1,600 MW unit under construction are expected to enhance operational efficiencies. This development aligns with JSW Energy's strategy to bolster its energy portfolio in India.

Future Expansion Plans

Currently, JSW Energy operates 5,658 MW of thermal generation capacity. With the ongoing construction of 3,200 MW at Salboni and an additional option for 1,800 MW at KSK Mahanadi, the company's total thermal capacity is projected to reach 10,658 MW. All new capacity will utilise domestic coal resources.

This expansion underscores JSW Energy's commitment to enhancing India's energy infrastructure while ensuring sustainable and efficient power generation. The focus on domestic coal usage also highlights a strategic move towards energy self-reliance.

The latest developments at Salboni are part of JSW Energy's broader vision to increase its footprint in India's energy sector. By leveraging local resources and strategic partnerships, the company aims to contribute significantly to meeting the country's growing energy demands.

With inputs from PTI