JSW Energy concludes acquisition of Jaypee’s Rs 9,275-cr hydro assets in Himachal
JSW Energy today concluded acquisition of 100% securities of Jaypee Group hydro assets in Himachal Pradesh. The company has informed the stock exchanges that it has concluded acquisition of 100% stakes of Himachal Baspa Power Company Ltd which has two operating hydro assets comprising 300 MW of Baspa II hydro electric power project and 1,091 MW Karcham Wangtoo hydro electric power project for an asset value of Rs 9,275 crore.
JSW Energy has also entered into a binding MoU with Jaiprakash Power Ventures Limited to acquire 100% stakes in the 500 MW Bina thermal power plant. According to the company, an additional consideration of Rs 300 crore may become payable upon receipts of certain additional consents and approvals related to the Karcham Wangtoo hydro electric power project on or before September 6, 2020.
The asset value is inter alia is determined based on Jaiprakash Power Ventures Limited having agreed to pay a compensation of Rs 150 crore to Himachal Baspa Power Company Ltd and the entire profits and losses of Himachal Baspa Power Company Ltd from September 1 this year accruing to the account of JSW Energy.
The company CMD Sajjan Jindal said, “This acquisition helps in diversifying the power generation portfolio with high quality hydro power assets, besides increasing share of long term power purchase agreement (PPA) in our basket. The plan to acquire Bina power project will further strengthen the business model of JSW Energy as also enhance our capacity to over 5,000 MW.”
With these acquisitions the company hopes to achieve its aim of power generation capacity of over 10,000 MW by 2025. Last November, JSW Energy had signed a definitive agreement with Jaypee to acquire two hydro power plants for Rs 9,700 crore. They included 300 MW of Baspa II and the 1,091 MW of Karcham Wangtoo projects.
Further, the company had inked a non binding agreement to purchase majority stake in the power arm of Monnet Ispat and Energy with a combined capacity of 1,050 MW.
