Advertisement

HindustanTimes Thu,23 Oct 2014

Jindal’s JSW Energy eyes JP Group’s power projects in MP

HT Correspondent , Hindustan Times  New Delhi, August 18, 2014
First Published: 23:33 IST(18/8/2014) | Last Updated: 23:35 IST(18/8/2014)

A host of acquisitions are brewing in India’s power sector.

Advertisement

The Sajjan Jindal-led JSW Energy is evaluating the prospects of a deal to purchase two-coal based power projects of the Manoj Gaur-led JP group in Madhya Pradesh, sources said.

If the deal is stuck, JSW Energy will be the next in the line after Anil Ambani’s Reliance Power and Gautam Adani’s Adani Power to announce an acquisition that is estimated at around Rs. 9,000-10,000 crore.

A JP Power executive, however, denied any talks with JSW Energy for the sale. “There are many discussions which happen but we have not firmed up anything with JSW for any of our projects,” he said.

A senior executive of JSW Energy told HT that the company was evaluating various options but “is yet to firm up plans of taking over-specific assets.”

The two projects include the 1,320-MW Nigre thermal power project, where JP Group has a 49% stake and the fully-owned 500-MW Bina thermal power project. Sources said that stakes of JP Group in these two projects are valued at around Rs. 8,000 crore.

The Madhya Pradesh State Mining Corporation Ltd holds the remaining 51% stake in the Nigrie power plant.

JSW was also in fray to buy the hydro assets of JP power that were sold to Reliance Power under a Rs. 12,000-crore deal as well as to buy Lanco Infratech’s 1200-MW Udupi power plant in Karnataka, which was sold to Adani Power in Rs. 6,000-crore deal.

A host of infrastructure companies that ventured into power projects, even as this was not part of their core competence, are now keen to move out and are scouting for partners for selling their stakes in these debt stuck projects currently languishing for want of fuel and other clearances.

Even the GMR Group is on a look out for selling power projects. Many other private firms like Lanco Infratech and Abhijeet Group are also scouting for buyers.


Advertisement
more from Business

HDFC profit rises 7% to Rs. 1,358 cr; revenue up 12%

India’s largest private sector mortgage lender, Housing Development Finance Corp, on Wednesday posted a 7% year-on-year rise in standalone net profit to Rs. 1,358 crore during the second quarter against Rs. 1,266 crore in the year-ago period.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved