JSW Energy, the flagship power generating company of Sajjan Jindal, is set to acquire a 1,000 MW Jindal Power plant for about Rs 6,000 crore, two persons familiar with the matter told ET. “The broad contours of the deal have been almost finalised and it is likely to be announced shortly,” one of these persons said. Jindal Power Ltd (JPL) is owned by Jindal Steel & Power Ltd (JSPL), the flagship company of Sajjan’s younger brother Naveen Jindal. Cash-crunch due to the downturn in steel prices and burgeoning debt have forced JSPL to shed assets. “As per company policy, we do not respond to speculations. As part of monetisation plans already advised, JSPL is looking at various options diligently to strengthen our balance sheets,” a JSPL spokesperson said. A JSW EnergyBSE 1.97 % spokesperson, however, declined to comment. JPL, the first domestic private sector player to commission an independent power plant (IPP) in 2007, has a total installed capacity of 3,400 MW set up at coal pitheads. This includes a 1,000 MW plant (250 MWx4), located at Raigarh district of Chhattisgarh, and another plant of 2,400 MW (600 MWx4) capacity, located at Tamnar in the same state. The proposed transaction involved only the Raigarh unit. The Adani group was in discussions to acquire the company “The deal couldn’t materialise as Jindal was not inclined to sell the entire power assets,” the second person familiar with the development said. The divestment is aimed at deleveraging the consolidated balance longsheet and a substantial portion of it is likely to be used to retire the debt of its parent’s steel arm.
Source: Economic TimesSajjan Jindal-led JSW Energy set to acquire 1,000 MW power plant for Rs 6,000 crore
Industry: Energy 2016-03-18