JSW Energy to acquire three power plants in India

JSW Energy Limited (JSW) and Jaiprakash Power Ventures Limited (JPVL), announced on September 26th the signing of a binding Memorandum of Understanding (MoU), for the 100% acquisition by JSW of three operational plants of JPVL.

The assets in the deal are the following: the 300 MW Baspa-II Hydro Electric Plant, the 1091 MW Karcham Wangtoo Hydro Electric Plant (both in Himachal Pradesh) and 500 MW Bina Thermal Power Plant (Madhya Pradesh).

On 27 July, R-Power, Reliance Group, had agreed to buy the hydropower assets of JPVL for an undisclosed sum, just days after a consortium led by Abu Dhabi National Energy Co. PJSC (Taqa), called off a plan to buy two of JPVL’s hydropower plants.

The new deal comes a day after Reliance Power pulled the plug on its deal with JP Power to acquire the assets.

No financial details of the deal have been disclosed. Sajjan Jindal, CMD, JSW Steel, said:

"The deal is premature to disclose the value of the deal as numbers are derivative."

Jaiprakash Power Ventures Limited currently owns and operates 2,951 MW of power capacity, which includes 1,791 MW of hydro capacity and 1160 MW of thermal capacity.

With ongoing commissioning of 2nd unit of 660 MW of its 1,320 MW Nigrie Thermal Power Plant in MP, and upon completion of the 1,980 MW Bara Thermal Power Plant in UP, it will have a generation base of 5,500 MW.

JSW Energy Limited (JSWEL) is the vertical of $11 billion JSW Group which has set up business facilities in various core sectors of India. The firm has verticals in steel, energy, infrastructure and cement. JSW Energy forays in various areas of power: Generation, Transmission and Trading.