JSW Energy plans to expand Salboni thermal project to 3,200 MW

JSW Energy has said it plans to double the capacity of its Salboni thermal power project in West Bengal to 3,200 MW, with total investment expected to rise to around Rs 40,000 crore. The proposal would rank among the largest private-sector power investments in the state.

The company is currently implementing the first phase of the project, a 1,600 MW ultra-supercritical thermal power plant comprising two units of 800 MW each. Environment clearance for this phase has already been received.

Speaking at the Business and Industry Conclave 2025, JSW Energy Joint Managing Director and Chief Executive Officer Sharad Mahendra said the expansion would be executed in phases. He said the next stages would depend on regulatory approvals and fuel tie-ups, and are aligned with the company’s long-term strategy to strengthen its thermal generation portfolio while supporting rising power demand in West Bengal.

The project is being developed through JSW Energy (Bengal) Limited (JSWEBL), a special purpose vehicle between JSW Bengal Steel Limited (JSWBSL), which holds a 26 percent stake, and JSW Energy, which holds 74 percent. Both entities are part of the JSW Group, which operates under the Jindal Group.

The Salboni project has seen several revisions since it was first proposed. In 2007, JSW Energy signed an agreement with the then Left Front government to set up a 10 million tonne steel plant and a 1,600 MW captive coal-fired power plant, with an estimated investment of Rs 35,000 crore. The plan stalled due to land lease issues following a change in the state government, along with impacts from the Coalgate scandal and Supreme Court-led coal block deallocations. The West Bengal government cancelled the power purchase agreement in 2014.

In 2008, JSW Steel received environment clearance for a 3 million tonne per annum steel plant and a 300 MW captive power plant, later transferred to JSW Energy (Bengal) Limited. The clearance lapsed in 2013, with a fresh terms of reference granted in June 2015. Project configurations changed multiple times, shifting from two 800 MW units to smaller and restructured captive capacity, alongside evolving power sale arrangements with West Bengal State Electricity Distribution Company Limited (WBSEDCL).

The project was revived in 2025, when JSW Energy signed a power purchase agreement with WBSEDCL for a new greenfield 1,600 MW thermal power station at Salboni. A groundbreaking ceremony for the 2 x 800 MW project was held in April 2025.

The featured photograph is for representation only.