The Sajjan Jindal-controlled JSW Energy on Tuesday said that it has fully acquired Himachal Baspa Power Company Ltd, a subsidiary of Jaiprakash Power Ventures Ltd, for ₹9,275 crore. JSW also signed an agreement to buy a 500 MW thermal power plant in Bina, Madhya Pradesh.
The proceeds will help Jaiprakash Power Ventures and its parent Jaypee Group pare their huge debt levels.
The deal, in the works since November 2014, gives JSW Energy a foothold in the hydroelectric business as Himachal Baspa runs the 300-MW Baspa II and the 1,091-MW Karcham Wangtoo hydroelectric projects on the Sutlej in Himachal Pradesh.
A statement issued by JSW Energy to the stock exchanges said that an additional ₹300 crore may be payable upon receipt of certain additional consents and approvals relating to the Karcham Wangtoo hydroelectric project on or before September 6, 2020.
The asset value has been determined based on Jaiprakash Power Ventures agreeing to pay a compensation of ₹150 crore to Himachal Baspa, and all the profits and losses of the latter from September 1, 2015 will accrue to JSW Energy, the statement said.
Bina thermal plant The statement also added that JSW has signed a binding Memorandum of Understanding with Jaiprakash Power Ventures to acquire a 100 per cent stake in the 500-MW Bina Thermal Power Plant located in the Sagar district of Madhya Pradesh.
If JSW Energy manages to acquire the Bina plant, the company’s power production capacity will reach 5,000 MW.
JSW Energy has a capacity of 3,140 MW, including coal- and lignite-based plants in Rajasthan, Maharashtra and Karnataka, and projects under implementation in other States.