JSW Energy to acquire JSPL’s 1,000-MW plant for Rs.6,500 cr - Feedback

JSW Energy plans to acquire Jindal Steel and Power’s (JSPL) 1,000-MW thermal power plant at Raigarh in Chhattisgarh for up to Rs. 6,500 crore, subject to conditions. The ‘family deal’ –– JSW Energy Chairman Sajjan Jindal is JSPL Chairman Naveen Jindal’s brother –– will help JSPL retire a part of its Rs. 42,500 crore debt.

JSW Energy Joint Managing Director Sanjay Sagar said on Wednesday that the acquisition cost would be pegged to the enterprise value of Rs. 4,000 crore, but could go up to Rs. 6,500 crore if JSPL secures fuel and enters into a long-term Power Purchase Agreement that guarantees a minimum return on investments. The deal must be completed by June 30, 2018, he said. JSW Energy will also extend a Rs. 500-crore loan to JSPL after securing due approvals, Sagar said. JSW Energy currently has an installed capacity of 4,531 MW; of this, 3,140 MW is from thermal plants, and 1,391 MW from hydropower. The company is targeting 10,000 MW of capacity by 2020.


About news

We take care of publishing the latest investment news and highlights for Feedback

Leave a Reply

Your email address will not be published. Required fields are marked *