JSW Energy Acquires GE Boiler Unit, Boosts Hydro Capacity
23 Sep 2025 CW Team
JSW Energy, the holding company of JSW Group's power business, will acquire the boiler manufacturing unit of GE Power India (GEPIL) through a strategic demerger to strengthen its thermal power operations, the company said in an exchange filing. The announcement on September 19 pushed JSW Energy shares modestly higher in a weak market.
Under the deal, GEPIL will demerge its Durgapur boiler manufacturing facility to JSW Energy via a share-swap arrangement. JSW Energy will issue 10 equity shares for every 139 shares held by GEPIL shareholders, with the scheme’s appointed date set as 1 July 2025.
JSW Energy said the demerger will enable vertical integration, reduce dependency on third-party suppliers, achieve economies of scale, and improve control over critical components. The move is expected to enhance cost efficiency and support the company’s future thermal projects, aligning with its long-term energy portfolio expansion strategy.
Analysts have reacted positively. Jefferies has a Buy call on JSW Energy, noting management anticipates 4.4–4.9 GW of capacity addition in FY26, compared with estimates of 3.1 GW. Morgan Stanley has an Overweight rating with a target price of Rs 659 per share. Shares of JSW Energy were up 1.5 per cent in early trade on 19 September.
In a separate development, JSW Neo Energy, a wholly owned subsidiary of JSW Energy, is acquiring Tidong Power Generation from Statkraft IH Holding. The hydro project under construction has a capacity of 150 MW and is valued at Rs 1,728 crore. The acquisition, expected to be completed by 15 January 2026, will support JSW Energy’s renewable capacity target of 30 GW by FY30.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “This acquisition strengthens our position as the largest private hydro power player in India and reinforces our commitment to the country’s power sector. We are confident of completing construction in a timely manner.” The project will become JSW Energy’s fourth hydro asset in Himachal Pradesh, significantly enhancing its hydropower portfolio.
India’s total installed power capacity has reached 485 GW, with 19.9 GW added in Q1 FY26 alone. Non-fossil fuel capacity now stands at 243 GW, achieving India’s Paris Agreement target five years ahead of schedule. JSW Energy noted a trend of state distribution companies increasingly bidding for thermal power, expected to continue in FY26.