JSW Energy to double Salboni thermal power capacity to 3,200 MW with Rs 40,000 crore investment
By Cygnus | 18 Dec 2025
JSW Energy has announced a massive expansion of its Salboni thermal power project in West Bengal, doubling its planned capacity to 3,200 MW. The total investment for the project is now projected to reach Rs 40,000 crore, solidifying its position as one of the largest private-sector power investments in the state’s history.
The announcement was made today by Sharad Mahendra, Joint MD and CEO of JSW Energy, during the Business and Industry Conclave 2025 in Kolkata. Mahendra confirmed that the expansion will proceed in phases, building upon the initial 1,600 MW phase (2x800 MW ultra-supercritical units) that broke ground in April 2025.
Strategic Funding and SHAKTI Linkage
The first phase, representing a Rs 16,000 crore investment, is already under implementation and holds a 25-year Power Purchase Agreement (PPA) with the West Bengal State Electricity Distribution Company Limited (WBSEDCL). The plant will utilize domestic coal allocated under the federal SHAKTI B (IV) policy, ensuring long-term fuel security at competitive rates.
The expansion is underpinned by JSW Energy’s strong financial maneuvering. On December 12, 2025, the company’s board approved a fundraise of up to Rs 10,000 crore through Qualified Institutions Placements (QIP) and other securities. This includes a Rs 3,000 crore preferential issue to promoter group entity JTPM Metal Traders, aimed at fueling the company’s “Strategy 3.0” growth plan.
Integrated Eastern India Strategy
Beyond power, the USD 23 billion JSW Group—led by Chairman Sajjan Jindal—is deepening its footprint in Eastern India. This includes a recent foray into Kolkata Port services and the continued development of a 2,000-acre industrial park adjacent to the Salboni site, which is being marketed to global manufacturers from Japan and Korea.
Summary
JSW Energy is doubling its Salboni thermal power capacity to 3,200 MW with a total investment of Rs 40,000 crore. By utilizing ultra-supercritical technology and domestic coal via the SHAKTI policy, the company is making Salboni a flagship of its 30 GW by 2030 goal. The project is integrated with the wider JSW Group’s logistics and infrastructure plays, including a 2,000-acre industrial park and new port services in West Bengal.
Frequently Asked Questions (FAQs)
Q1: What is the updated cost and capacity?
The capacity is now 3,200 MW (doubled), and the total investment has risen to Rs 40,000 crore.
Q2: What is the status of Phase 1?
Construction began in April 2025. It features two 800 MW units and has already secured environmental clearances and a 25-year PPA with WBSEDCL.
Q3: How is the project being funded?
Funding is supported by a Rs 10,000 crore capital raise approved on Dec 12, 2025, including promoter-led preferential shares.
Q4: What is the significance of the SHAKTI policy?
The SHAKTI B (IV) policy ensures the plant gets a steady supply of domestic coal, reducing dependence on expensive imports.
Q5: What else is JSW building in Salboni?
JSW is developing a 2,000-acre industrial park designed for “plug-and-play” manufacturing, alongside its recently launched port service operations.
