JSW Energy Limited’s subsidiary, JSW Mahanadi Power Company Limited, has been served a demand notice of Rs 1,447.34 crore by the Water Resources Division in Janjgir, Chhattisgarh. This demand pertains mostly to the period preceding the approval of its resolution plan under the Insolvency and Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT) in Hyderabad sanctioned the resolution plan on February 13, 2025, extinguishing all crystallized and unclaimed liabilities of the subsidiary as of that date.
The NCLT ruling specified that no creditor can claim amounts exceeding those provided for in the resolution plan. JSW Mahanadi Power Company Limited confirmed the receipt of the demand in a stock exchange filing. Subsequent to the plan’s implementation, the subsidiary has been meeting its water charges obligations promptly. JSW Energy has contested the demand in the High Court of Chhattisgarh, citing legal precedents under the Insolvency and Bankruptcy Code and the NCLT order.
JSW Energy also reported robust financial performance in its latest quarterly results. The company recorded a net profit of Rs 420 crore for the third quarter of FY26, a substantial increase from Rs 168 crore in the corresponding period the previous year. This growth was primarily fueled by enhanced power generation and contributions from acquired assets.
