Mumbai, June 13 -- The transaction is subject to receipt of the necessary regulatory and customary approvals under the definitive agreements.

"Upon consummation of the transaction, MCCPL will become a wholly-owned subsidiary of the company," JSW Energy said in a statement.

MCCPL owns and operates a 300 MW thermal power plant at Korba, Chhattisgarh. The plant has a long term power purchase agreement (PPA) of 195 MW (net) with Rajasthan discoms, routed through PTC India, with a residual PPA life of nearly 14 years.

In addition, the plant provides 5% power at variable cost to the Chhattisgarh discom, while the balance 64 MW capacity is sold in the merchant market. Coal is secured through a long-term fuel supply agreement with SECL, and li...