Reliance Power signs MOU to acquire hydropower portfolio

Reliance CleanGen Ltd. (RCL), a 100% subsidiary of Reliance Power Ltd. (part of the Anil Ambani led Reliance Group), and Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of Jaiprakash Associates Ltd. (JAL), announced the signing of an exclusive Memorandum of Understanding (MOU), for the 100% acquisition by RCL of the entire hydroelectric power portfolio of JPVL in India.

JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs100 billion (US$1.67 billion).

The portfolio comprises of the following 3 plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir:

• Baspa Stage II, which has a capacity of 300 MW. The hydroelectric power plant is located in Kinnaur District, (within 2 km of each other and sharing support facilities). Power purchase agreement with Himachal Pradesh.

• Himachal Pradesh Karcham Wangtoo, which has a capacity of 1091 MW Rajasthan.The hydroelectric power plant is located in Kinnaur District, (within 2 km of each other and sharing support facilities). Power purchase agreement with Uttar Pradesh, Haryana, Punjab (Through PTC), and Himachal Pradesh
• Vishnuprayag, which has a capacity of 400 MW. The hydroelectric power plant is located in Chamoli District. Power purchase agreement with Uttarakhand Uttar Pradesh, and Uttarakhand.

JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated Balance Sheet. The completion of the proposed transaction would make Reliance Power the largest provider of hydroelectric power in the private sector in India.

In addition to the assets contemplated to be acquired under the proposed Transaction, Reliance Power has hydroelectric power projects aggregating over 5,000 MW under development, of which 4,200 MW are located in Arunachal Pradesh, 700 MW in Himachal Pradesh and 400 MW in Uttarakhand.

SBI Capital Markets Limited are acting as Advisors for the proposed Transaction.