GE Power to demerge Durgapur boiler business to JSW Energy

GE Power India Limited (GEPIL) has approved a scheme of arrangement to demerge its Durgapur-based power boiler components and coal mill manufacturing business into JSW Energy Limited. The board cleared the proposal on 18 September 2025, along with a Demerger Cooperation Agreement.

Under the plan, the Durgapur unit, which manufactures power boiler parts, pressure vessels, piping, and coal mills, will be transferred to JSW as a going concern. In return, shareholders of GE Power India will receive 10 fully paid equity shares of JSW Energy for every 139 shares held in the company.

The demerged division recorded a turnover of Rs 529.5 million in FY25, contributing 5.1 percent to GEPIL’s revenue but with a negative net worth of Rs 203.5 million. The company’s overall turnover for the year stood at Rs 10,471 million.

The transaction is subject to approvals from shareholders, creditors, the National Company Law Tribunal, SEBI, BSE, and NSE. If the demerger cannot be implemented, the companies have agreed to pursue a slump sale of the undertaking.

According to GEPIL, the move will allow it to streamline operations and focus on growth areas, while providing JSW with entry into boiler pressure parts manufacturing and enabling operational synergies for its power portfolio.