JSW will acquire 100% stake in 300MW Baspa-II hydro electric plant, 1,091MW Karcham Wangtoo hydro electric plant and 500MW Bina thermal power plant.
The MOU follows collapse of Jaiprakash Power Ventures’ draft scheme of arrangement for sale of Baspa-II and Karcham Wangtoo hydro electric projects to a consortium led by Abu Dhabi National Energy Company (TAQA) for $616m.
The Baspa-II and Karcham Wangtoo hydro electric projects in Himachal Pradesh, India, have a combined power generation capacity of 1,391MW.
Jaiprakash Power Ventures has been negotiating with Reliance Power for two months prior to calling off the deal, reports Press Trust of India (PTI).
Quoting industry sources, the news agency added that the talks failed following a showcause notice issued by Central Electricity Authority (CEA) for alleged violation of techno-economic clearance conditions of the Karcham Wangtoo project.
The Karacham Wangtoo project had approval for 1,000MW capacity, but has been built with capacity of 1,200 MW. The Anil Ambani’s group had sought for a bank guarantee for the remaining 200MW.
Japyee is considering to sell the two hydro projects to clear its nearly INR120bn ($1.96bn) debt.
Image: Japyee is also developing Sardar Sarovar Dam on the River Narmada, India. Photo: courtesy of AceFighter19.
