GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Limited, has entered into exclusive discussions with JSW Energy Limited (JSW) for potential divestment of its entire stake in its subsidiary company, GMR Kamalanga Energy Limited.
GMR Kamalanga owns and operates a 1,050-MW thermal power plant in Odisha. It has fuel linkages with Mahanadi Coal Fields, a subsidiary of Coal India Ltd, and a long-term power purchase agreement with Grid Corporation of Odisha
Both GEL and JSW intend to conclude these discussions in an expeditious manner, GMR Infra informed stock exchanges.
The development comes as the GMR Group is monetising its assets in road and power sectors to reduce its debt. The diversified infrastructure company has taken to several divestment initiatives to pare its debt, free up equity to invest in new projects.
GMR had recently secured the Competition Commission of India’s approval to divest stake in its airports arm to a Tata Group entity, GiC and others, with a deal value of about ₹8,000 crore.
The company is also in the process of restructuring its business leading to vertical division of the airports business and other divisions. The move is expected to pave way for separate listing of the airports business.
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