JSW signs deal to acquire Jaiprakash Power's three hydropower projects
26 September 2014
JSW Energy, led by billionaire Sajjan Jindal, has signed an agreement to acquire Jaiprakash Power Ventures Ltd's (JPVL) three hydropower projects. The deal comes a day after Reliance Power Ltd (R-Power) called off talks to buy JPVL's assets citing regulatory uncertainties.
However, the financial details of the deal were not disclosed.
JSW Energy will acquire three operating power plants from JPVL as it looks to looks to expand its portfolio beyond coal and lignite-based plants.
The company will acquire two hydropower plants and a thermal power plant, having a total a combined capacity of 1,891 megawatts, the companies said in a statement.
The plants are a 300 MW Baspa-II Hydro Electric Plant, 1,091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant.
On Wednesday, Reliance Power (R-Power) called off its discussions with Jaiprakash Power Ventures Ltd (JPVL) to buy three hydropower projects. The company, controlled by Anil Ambani-led ADA Group, cited regulatory uncertainties for the withdrawal.
''Due to prevailing regulatory uncertainties, and tariff issues, which impact valuations, Reliance Power and JPVL have terminated discussions regarding Reliance Power's acquisition of JPVL's hydro portfolio of three projects, with aggregate capacity of 1,791 MWs (megawatts),'' R-Power said in a statement.
In July, R-Power had agreed to buy JPVL's hydropower assets for an undisclosed sum. This followed a withdrawal by a consortium led by Abu Dhabi National Energy Co. PJSC for Rs 9,689 crore deal to buy JPVL's hydropower plants.