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Publish Date : 18-Nov-2014

JSW Energy has decided to pay INR 9,700 crore towards the acquisition of two hydro electric power assets from the Jaypee Group originally agreed upon in September. According to JSW Energy, the two assets which includes the 300 MW Baspa II power project and the 1,091 MW Karcham Wangtoo project, both in Himachal Pradesh would be transferred by Jaiprakash Power Ventures (JPVL) into a new entity called Himachal Baspa Power. Then, JSW Energy would acquire the entire equity holding in the new company from JPVL and other shareholders.

During the announcement of the deal in September, JSW Energy had stated that it was buying Jaypee Group’s 500 MW thermal power plant in Bina, which was however not mentioned in company’s Sunday's statement. Also, the company has not revealed as to how it is going to arrange fund for the deal and whether the consideration to be paid to the Jaypee Group would be net of the debt associated with these assets.

With this acquisition, JSW Energy will emerge as the largest hydroelectric power producer in the country with an operating portfolio of 1,300 MW. The company said, “Post-acquisition, aggregate installed and operational power generation capacity of JSW Energy will enhanced to 4,531 MW.” This acquisition would yield an immediate cash flow and enhance consolidated profitability.

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