JSW Energy, has signed a binding Memorandum of Understanding (MoU) with the Swaziland Electricity Company (SEC) and the Government of the Kingdom of Swaziland to set up a thermal power plant in the Kingdom of Swaziland in order to facilitate energy security and make Swaziland self-reliant in power by exploiting the natural resource available within the country.

The capacity of the power plant to be set up will be decided by JSW Energy in consultation with SEC based on the coal resources found during the exploration of an area of approximately 16,000 hectares to be prospected by JSW Energy under a prospecting license granted to them.

In addition to meeting the total power demand of the Kingdom of Swaziland which currently stands at around 300 MW, JSW Energy and SEC shall also explore the possibility of exporting power to the neighbouring countries that are connected through a common transmission network.

The MoU provides for setting up a thermal power plant and undertaking of mining activities pursuant to execution of definitive agreements - a long term Power Purchase Agreement (PPA) to be guaranteed by the Kingdom of Swaziland and fuel supply agreement from captive coal resources; and facilitation of other consents and-approvals including associated infrastructure facilities to support coal mining, power generation, evacuation and allied activities.

Shares of the company declined Rs 0.1, or 0.14%, to trade at Rs 70.85. The total volume of shares traded was 78,597 at the BSE (12.33 p.m., Monday).