In 2007, Rajasthan State Mines & Minerals Ltd (RSSML) has signed agreement with Raj West Power Limited (a wholly owned subsidiary of JSW Energy) for setting up a power plant in Barmer district of Rajasthan. The proposed plant was conceptualized as a joint venture project between RSSML and Raj West Power limited.
A "Phase I" of 8x135 MW units was completed in 2013. An additional 2x135 MW units are planned.
The project is a state government entity with 51 percent stake is owned by RSMML. The name of the new proposed joint venture was ‘Barmer Lignite Mining Corporation’. The estimated cost of the project was about Rs 5,000-crore. The initial generation capacity was about 1,000 MW. The project is the second major lignite power project in Rajasthan state  and lignite will be sourced from neighbouring Jalipa and Kapurdi villages. The company is planning to bring water from the Indira Gandhi Canal near Jaisalmer, 200 km away, through a pipeline.
The proposed power plant was conceptualized in 2007. The land acquisition for the project was initiated accordingly. The Rajasthan state Government planned to acquire about 8,000 hectares of land for the project. It is estimated that the land acquisition is going to affect 40,000 people in and around 30 villages. Fearing the loss of land and livelihood villagers staged protest in various forms. Initially, they did not allow government officials to enter into villages for land survey and formed an anti-acquisition group in December 2007.
According to Kusvinder Singh, the lawyer representing the farmers, those who have sold their land got monetary compensation, not land as required by the 2007 R&R policy. The organization filed a case against Jindal subsidiary RajWest Power in the Jodhpur bench of the Rajasthan High Court for the proper assessment of land and livelihood and for lack of measures to mitigate environmental and social impacts.  The protesting organizations, Gram Sewa Sahakari Samiti and the Sangarsh Samiti, have started indefinite dharna (sit in protest) in the village in 2007. They even stopped construction works at the project site .