JSW Energy, and 1 Malaysia Development Bhd (1MDB), a Malaysian company, are in the race to acquire Lanco Infratech's coal-fired power plant at Nandikur, near Padubidri, in Udupi district of Karnataka.

The acquisition, with a total capacity of 1,200 MW, is valued at over $1billion (approx Rs 6,077 crore) and will help Lanco to reduce its debt.

The potential suitors are conducting the final round of diligence that is expected to be completed soon, pursuant to which final negotiations over terms and documentation will be initiated.

With a mission to enhancing the energy security of Malaysia, 1MDB has been scouting for operational assets in the region.

JSW Energy has aggressively revived its interest in the coastal project, after its first round of advance negotiations with Lanco's top brass fell through in early 2013.

The power plant was undertaken by Udupi Power Corporation, and Lanco Infratech was the contractor for the project. The project was commissioned in April 2011 with an investment of Rs 6,002 crore.