Billionaire Naveen Jindal-backed Jindal Power is exploring the possibility of getting into power distribution business, sources in the know said.
Entry could happen post the company participating in competitive bidding processes for discom licenses or as and when possible privatisation of discoms happen.
For instance, the privatisation of two Uttar Pradesh discoms — Purvanchal Vidyut Vitran Nigam and Dakshinanchal Vidyut Vitran Nigam - is underway, with the state government planning to offload a 51 per cent stake. The process is expected to be completed later this year. Several conglomerates including Adani Group have expressed interest in bidding for it.
“This is a new vertical — discom — and entry has to be through competitive bidding processes only. In Uttar Pradesh, for example, privatisation is under way. And may be there can be a look into it in the coming few weeks. There is still time before the last date of submission,” a market source said.
Jindal Power did not respond to queries by businessline.
A discom license, or distribution license, is an authorisation granted to a company to distribute electricity within a specific geographical area. It essentially allows the entity to purchase electricity from power generators and then sell it to consumers within its designated service territory.
Jindal Power currently has a distribution license for the Jindal Industrial Park in Raigarh, Chhattisgarh. This allows them to distribute electricity to industrial consumers within the park’s boundaries. The Chhattisgarh State Electricity Regulatory Commission issued the license, which was initially for a limited area with a maximum demand not exceeding 299 MW.
“The company has a strong portfolio of power generating units,” said a second source adding that it has power purchase agreements with at least four states - Uttar Pradesh, Karnataka, Chattisgarh and Tamil lNadu.
Jindal Power’s current portfolio is 4,300 MW. It has projects across Raigarh (3,400 MW), Nellore (600 MW) — acquired in 2022 at ₹300 crore and at Dhule (300 MW). The company is in the process of acquisition of Bhadreshwar Vidyut in Gujarat — 2 units of 150 MW each — at a cost of nearly ₹500 crore, through the NCLT.
Jhajjar Power Plant acquisition
It is also a front-runner for Apraava Energy’s Jhajjar Power Plant in Haryana.
Jindal Power has already signed an exclusivity agreement with Apraava Energy for the 1350 MW power plant. Acquisition cost is expected to be in the ₹4000–5000 crore range.
It is in advanced talks.
“Maybe in another two to three months, we would have clarity on the deal,” a source said.
Nuclear power project
The Naveen Jindal Group continues to be interested in tapping the nuclear power sector.
Jindal Nuclear - a subsidiary of Jindal Renewables - intends to build 18 gigawatts (GW) of nuclear power capacity over the next two decades. The company plans to invest approximately ₹1.80 lakh crore ($21 billion) in this venture. This initiative aligns with the Indian government’s goal of achieving 100 GW of nuclear power capacity by 2047.
“Scheme guidelines are awaited,” the source said.
The Nuclear Power Corporation of India Limited (NPCIL) has issued a Request for Proposals (RFP) inviting Indian industries to participate in setting up 220 MW Bharat Small Reactors (BSR) for captive power generation. These compact, Pressurized Heavy Water Reactors (PHWRs) are designed to provide a sustainable, low-carbon energy solution for hard-to-abate industries, enabling them to decarbonise their operations.
As per Indian laws, NPCIL is the sole operator of the nuclear power plants in the country. Under the Bharat Small Nuclear proposals, the user is expected to use the generated power for its own captive requirements but may sell the electricity to other customers at a tariff set by the Department of Atomic Energy, in accordance with Indian laws and regulations.
The user will be responsible for all capital and operating expenses throughout the project’s lifecycle, including pre-project phases, maintenance, asset reinstatement in the event of damage and decommissioning.
The project will be constructed by the user under the supervision and oversight of NPCIL, and upon completion, the plant will be transferred to NPCIL for operation.