Jindal Brothers signed up a power deal worth $976 million

India: JSW Energy Ltd. has decided to buy a power plant in Chhattisgarh from Jindal Steel which is highly indebted under loans. The deal will increase the presence of JSW in Chhattisgarh through this acquisition. The company’s strong financials has helped to buy the plant at attractive valuations. JSW aims to triple its generating capacity in the next ten years.

TechSci Research depicts that deal between JSW and Jindal Steel and Power Ltd. will help Jindal Steel to reduce its debt while offering expansion opportunity to JSW to increase its generation capacity. JSW is expected to add around 12GW of power generation capacity, which will give major boost to the companies engaged in transformer business. It will also lead to the addition of transmission and distribution infrastructure needed transmit power to end customers. This will eventually give a major boost to power and distribution Transformer Industry in India.

According to “India Power & Distribution Transformers Market Forecast & Opportunities, 2020”, the power and distribution transformers market in India is projected to grow at a CAGR of over 10% till 2020. Power transformers contribute a major portion in overall market revenues due to their higher price points. Under the 12^thfive year plan (2012-2017), Indian government allocated US$ 200 billion for strengthening the country’s power generation, transmission and distribution sector. One of the major developments underway includes the country’s shift from 765 kV to 1200 kV power transmission.