JSW Energy Inks PPA for 1,600 MW Salboni Power Plant

Introduction

JSW Energy, through its subsidiary JSW Thermal Energy Two Ltd, has signed a significant Power Purchase Agreement (PPA) with the West Bengal State Electricity Distribution Company (WBSEDCL). The agreement is for the supply of power from a new 1,600 MW thermal power project located in Salboni, West Bengal. This development marks the second such agreement between the two entities, effectively doubling JSW Energy's planned capacity at the Salboni site to 3,200 MW and positioning it as a cornerstone of the company's expansion in Eastern India.

Details of the New Agreement

The latest PPA follows a competitive bidding process initiated by WBSEDCL. It pertains to a greenfield project that will feature a 1,600 MW super or ultra-supercritical thermal power plant, comprising two 800 MW units. The project is scheduled to become operational within six years. This agreement mirrors a previous 1,600 MW PPA signed in March 2025, solidifying a long-term energy partnership. The plant will utilize domestic coal allocated to West Bengal under the SHAKTI B (iv) policy, ensuring a stable and cost-effective fuel supply.

Strategic Importance of the Salboni Project

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, highlighted the project's strategic value. "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," he stated. Mahendra emphasized that this expansion makes Salboni the company's largest single-location asset. The project's location is advantageous due to its proximity to coal blocks and the operational synergies it will share with the existing 1,600 MW unit already under construction. These factors are expected to drive significant operational efficiencies and reinforce India's energy security with reliable power.

Investment and Economic Impact

The total investment for the expanded 3,200 MW project is estimated to be around ₹40,000 crore, making it one of the largest private-sector power investments in West Bengal's history. The initial 1,600 MW phase alone represents an investment of approximately ₹16,000 crore. This substantial capital outlay is expected to stimulate regional economic growth, creating thousands of direct and indirect jobs. The JSW Group also plans to develop a 2,000-acre industrial park in Salboni, further enhancing the region's industrial infrastructure.

Project Snapshot: Salboni Thermal Power Plant

Alignment with JSW Energy's Growth Strategy

This expansion is a critical component of JSW Energy's long-term vision. The company currently operates 5,658 MW of thermal generation capacity. With the 3,200 MW under construction at Salboni and a potential 1,800 MW addition at KSK Mahanadi, its total thermal capacity is projected to reach 10,658 MW. This aligns with its broader goal of achieving a total locked-in generation capacity of 32.1 GW. Furthermore, JSW Energy aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, with a long-term target of achieving carbon neutrality by 2050.

JSW Group's Integrated Vision for Eastern India

The Salboni power project is part of the JSW Group's wider strategy to build an integrated business ecosystem in Eastern India. Led by Chairman Sajjan Jindal, the group is also expanding its footprint in logistics and infrastructure, including a foray into port services at Kolkata Port. This integrated approach aims to create a synergistic network across energy, logistics, and industrial development, positioning the region for sustained growth.

Conclusion

The second PPA for the Salboni project underscores JSW Energy's commitment to strengthening India's energy infrastructure. By doubling its capacity at this strategic location, the company not only supports West Bengal's rising power demand but also advances its own growth objectives. The project's reliance on domestic coal and advanced technology highlights a balanced approach to meeting the country's baseload energy needs efficiently and affordably. The phased rollout, subject to regulatory approvals, will be a key development to watch in India's evolving energy landscape.