JSW Energy, led by billionaire industrialist Sajjan Jindal, has terminated a business agreement signed three years ago with Naveen Jindal-led Jindal Steel and Power to acquire its 1,000 megawatt thermal power plant in Chhattisgarh.
On May 3, 2016 JSW Energy had agreed to acquire the 1,000 MW (4×250 MW) thermal power plant located in Raigarh district for Rs 6,500 crore. The company was expected to pay at least Rs 4,000 crore, excluding net current assets, and an additional Rs 2,500 crore following the completion of the deal.
The deal was expected to be completed by June 30, 2018 but the companies failed to finalise it. The deadline was later extended by one year.
“We now wish to inform you that with the elapsing of the long stop date without completion of the stipulated conditions precedent, the proposed acquisition of the said power plant stands terminated,” JSW Energy said in a statement.
The proceeds of the deal would have helped Jindal Steel and Power pare its debt. According to reports, the company’s total debt is about Rs 39,000 crore.
The company has been facing financial crisis due to cancellation of its coal mine lease by the Supreme Court along with weak global commodity prices.
