Near-term relief for JSW Energy

Short-term pact is comforting at a time when merchant power rates are softening, coal costs rising

A short-term order of 650 megawatts (Mw) comes as a relief for JSW Energy's Vijaynagar facility, in not much use since July 2016, but profitable nevertheless. Delays in 750-Mw Karnataka power purchase agreement (PPA) for the unit were a major overhang for the JSW Energy stock, which fell from 52-week high of Rs 86 in September to Rs 53.5 in November and now trades at 64.5 levels.

JSW Energy will be supplying 650 Mw to Power Company of Karnataka Limited (PCKL). The supply will commence in January and continue till May 31. This power supply agreement, even in short