Third time lucky? Jaypee Group inks pact to sell three power plants to JSW Energy

New Delhi: In its third attempt to strike a deal for its power assets, Jaypee Group today inked a binding pact with Sajjan Jindal-led JSW Energy for selling three projects, including two hydel plants.

The announcement comes a day after Jaiprakash Power’s proposed sale of three hydro projects fell through. In July, Jaypee Group had announced Abu Dhabi National Energy Company (TAQA) withdrew from nearly Rs 10,000 crore deal to acquire its two hydel power projects.

“JSW Energy Limited (JSW) and Jaiprakash Power Ventures Limited (JPVL), today announced the signing of binding Memorandum of Understanding (MoU), for the 100 per cent acquisition by JSW of three operational plants of JPVL,” the companies said in similarly-worded statements.

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The financial details of the deal, however, were not disclosed.

These plants area – 300 MW Baspa-II Hydro Electric Plant, 1,091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant, it added.

Shares of Jaiprakash Power Ventures tanked nearly 14 per cent today on the BSE.

JPVL and Reliance Power had been in talks for two months before calling off the deal.

As per industry sources, the talks collapsed after Central Electricity Authority (CEA) issued show cause notice for alleged violation of techno-economic clearance conditions of the Karcham Wangtoo project, which had an approved capacity of 1,000 MW but actual capacity was built to 1,200 MW.

Jaiprakash group (Japyee) was looking to sell the hydro projects to cut its nearly Rs 12,000 crore debt. In July, Reliance Power signed an initial agreement to acquire all the three hydroelectric power plants of JPVL.

PTI