In a significant move for India's power sector, JSW Energy has announced its decision to acquire the supercritical thermal boiler manufacturing facility of General Electric (GE) located in Durgapur, West Bengal. This strategic acquisition marks a major expansion for the energy conglomerate and involves one of only three such specialized plants in the country.
A Strategic Acquisition in Eastern India
Sharad Mahendra, the Joint Managing Director and CEO of JSW Energy, confirmed to the Times of India that the company has already inked an agreement with the US-based engineering giant GE for the purchase. However, he noted that the final transaction will require some additional time to be completed. The Durgapur unit is notably the only facility of its kind in the eastern region of India and represents the third such supercritical boiler manufacturing plant in the nation, with the other two being operated by Bharat Heavy Electricals Limited (BHEL) and Mitsubishi, respectively.
Mahendra clarified that this sale is part of GE's global strategy to exit the thermal boiler business entirely. The American multinational has been divesting its thermal assets worldwide, and the Durgapur plant is a part of this larger exit plan.
Reviving Capacity and Creating Jobs
The Durgapur plant possesses an annual manufacturing capacity of one to two boilers, equivalent to 1,600 MW (or 800 MW x 2). Despite this potential, the facility is currently operating at a mere 15% of its capacity, primarily producing spare parts for existing boiler clients. This underutilization is set to change under JSW Energy's ownership.
One of the most immediate positive impacts of this acquisition will be on employment. Mahendra stated that the workforce at the plant is expected to surge from the current 200 employees to approximately 600, providing a substantial boost to the local economy in Durgapur and the surrounding region.
Expanding JSW's Power Portfolio
This acquisition is not an isolated investment but a key piece of JSW Energy's larger growth strategy. The company has revealed plans to invest in an additional 1,600 MW supercritical power plant in Salboni, West Bengal. Once operational, this new plant, combined with the capacity from the Durgapur facility, will take JSW's total supercritical power capacity to 3,200 MW.
The financial commitment behind this expansion is substantial. The JSW Group's total investment in the power sector is now projected to reach a staggering Rs 40,000 crore. This includes an incremental investment of Rs 24,000 crore on top of the Rs 16,000 crore that had been announced earlier.
This move by JSW Energy signals a strong commitment to strengthening India's domestic manufacturing capabilities for critical power infrastructure while simultaneously planning for significant generation capacity addition. It represents a vote of confidence in the future of thermal power, albeit with more efficient supercritical technology, and underscores the dynamic shifts occurring within the country's industrial and energy landscape.
