JSW Energy has decided to withdraw its bid to acquire distressed asset of Monnet Power Company, which was put on the block as promoters and lenders refused to accept the conditions put forth by the company.

On Thursday, JSW Energy said it had submitted a proposal to Monnet Ispat & Energy for acquiring majority stake in its subsidiary Monnet Power Company, which was not accepted by the lenders and MPCL. Presently, the company has withdrawn itself from the acquisition process, it said.

In July 2015, JSW Energy entered into an agreement with Monnet Ispat to acquire majority stake in Monnet Power, which is in the process of setting up a 1050-MW thermal power plant in Angul, Odisha, and a super critical 660 MW power plant at the same site. The projects have seen severe cost over-runs and the total debt is estimated at over ₹5,000 crore.

Meanwhile, JSW Energy plans to invest ₹2,900 crore in 240 MW Kutehr hydro electric project in Himachal Pradesh and has invested ₹272 crore as of June 2016.

“Work on financial closure and subsequent award of EPC contract is likely to be taken up during the current financial year,” it said.

JSW Energy has reported 19 per cent rise in the June quarter consolidated net profit at ₹367 crore (₹309 crore). Net sales rose 17 per cent to ₹2,411 crore (₹2,058 crore).

Total expenses in the quarter was up 8 per cent to ₹1,573 crore (₹1,458 crore).

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