Naveen Jindal-owned Jindal Power is competing with Sev.en Global Investments of the Czech Republic to acquire the 1,320-MW Jhajjar thermal power project in Haryana from Apraava Energy (formerly CLP India) as demand for coal-fired power rises, multiple people aware of the development said.
The two potential buyers are currently conducting due diligence, with the asset likely to be valued at Rs 4,000 crore, they said.
Some other firms, including JSW Power, NTPC and a couple of global infrastructure funds, had also explored the deal initially, but did not pursue it further, the sources said.
HSBC and Axis Capital are advising Apraava on the sale process.
Mails sent to Jindal Power and Sev.en Global Investments did not elicit any response till the press time. An Apraava Energy spokesperson declined to comment.
Apraava Energy is jointly owned by Hong Kong-based CLP (formerly China Light & Power) Group and Canadian pension fund Caisse de depot et placement du Quebec (CDPQ). Its total portfolio of 3,000 MW is a combination of fossil fuels and renewable power.
The 1,320 MW power project located in Jhajjar district has been commercially operational since 2012. The plant delivers 90% of its output to Haryana and the remaining to Tata Power Trading Company.
Jhajjar Power is the first plant in the National Capital Region (NCR) to have installed flue gas desulphurisation (FGD) technology with the objective of reducing air pollution and contributing to a healthy environment around the plant and its nearby regions, according to the company website.
Apraava Energy began installation of FGD during the construction of the plant in 2012 even before the environment norms came into effect in 2015, it said.
Sev.en Global Investments is a Tykac family-owned investment group present in four continents with a focus on investments in thermal power plants globally. Sev.en Group operates lignite power plants, thermal plants, and lignite quarries across the globe.
It has 5.8 GW total installed generation capacity and 10 million tonne coal mined per annum.
Sev.en’s founder Pavel Tykac is a prominent Czech entrepreneur and investor in the energy and mining sectors.
In 2023, Sev.en Global Investments made a strong presence in Vietnam by acquiring a 51% equity stake in Mong Duong 2 coal-fired power plant from American energy company AES Corporation. It acquired an additional 19% stake last year from China Investment Corporation – increasing its total stake at Mong Duong 2 power plant to about 70%.
The Naveen Jindal Group, through Jindal Power, operates 4,300 MW of thermal power capacity with thermal power stations in Tamnar, Chhattisgarh; Shirpur, Maharashtra; and Simhapuri, Andhra Pradesh. Jindal Group is also targeting 12 GW of renewable power capacity, along with storage facilities and large-scale green hydrogen production by 2030.
In 2018, CDPQ had acquired 40% in CLP India for $365 million, and increased its stake to 50% by acquiring additional stake in 2022. In January, Apraava Energy commissioned its largest wind power project with a capacity of 250.7 MW at Sidhpur in Devbhoomi Dwarka district, Gujarat. Apraava operates two other wind projects in Gujarat – a 50.4 MW project in Mahidad and a 100.8 MW project in Samana. The company will commence construction on three solar energy projects with a combined capacity of 600 MW in Rajasthan.
CDPQ, which has been investing in renewable energy and road sectors in India, deployed about $7.5 billion since 2016.
In India, CDPQ owns Maple Highways – its platform for the roads sector in India and the sponsor of InvIT -Maple Infrastructure Trust. CDPQ also owns Azure Power, a leading independent solar power producer.
