At JSW Energy, we focus on supporting our growth plans by diversifying our fuel mix and strengthening our geographical spread. With adequate access to resources, we have been able to mitigate our raw material risk significantly. With rising global coal prices, we are aiming to minimise the risk of raw material availability by relying on both domestic and imported coal supplies. Such a strategy enables us to control costs and maintain our operational efficiency during a period of escalating commodity prices across the world
We have evolved an optimal mix of long-term contracts and merchant power sales. The long-term PPAs have helped stabilise cash flows and provide us an edge as the returns are pre-defined. Most importantly, in FY 2016-17, such a strategy helped us insulate our business from the impact of volatile fuel price movement, and declining merchant tariff.