JSW Energy on Tuesday said it has signed agreement to acquire an 8.3% stake  in Toshiba JSW Power Systems (TJPS), for Rs 150 crore by way of a secondary purchase of equity shares from Toshiba Corporation, Japan. Post-acquisition, the company’s shareholding in TJPS will increase to 10.7% on fully diluted basis.

To facilitate the future thermal growth plans of the company and to de-risk the supply chain, “This strategic investment will also aid the company in building thermal plants at one of the lowest capital costs in the Industry and further strengthens the company’s capability in the thermal space, for the current thermal pipeline as well as for any future opportunities,” the company said in a release.

With this transaction, along with the acquisition under way of GE’s boiler business, the company has fully de-risked its thermal ambitions, it said. The company currently operates an installed thermal capacity of 5,658 MW, with an additional 3,200 MW under construction at its Salboni Thermal Power Plant, and an optionality of 1,800 MW for brownfield expansion at Mahanadi. With this, the total locked-in thermal capacity of the company stands at 10,658 MW 

. TJPS operates a Chennai-based manufacturing facility that can manufacture large sized supercritical/ultra supercritical steam turbine generators ranging up to 1,000 MW. The Company has already placed orders for 1,600 MW of ultra-supercritical turbine-generators with TJPS, which enhances Company’s visibility and access over a critical equipment supply chain.