JSW Energy is in final stages of negotiations with Jindal Steel and Power (JSPL) to buy the latter's 1,000 MW power plant in Raigarh district of Chhattisgarh for around Rs 5,200 crore.
"JSW Energy is in last leg of negotiations to seal a deal with Jindal Steel and Power Ltd for buying its 1,000 MW power plant in Raigarh district for around Rs 5,200 crore," a source privy to the development said.
A formal announcement in this regard may be done next week by both the companies due to extended weekend on account of Holi and Good Friday, the source added.
When asked about the negotiation on the deal, a JSW Energy spokesperson said, "JSW Energy Ltd continues to evaluate various growth opportunities. However the company is not in specific discussions for any particular project."
"Whenever any proposal is finalised, the company will comply with the provisions of the Listing agreement entered and make the requisite disclosures accordingly," the spokesperson added.
A Jindal Steel and Power spokesperson said, "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."
The consolidated debt of Naveen Jindal-led JSPL is around Rs 46,000 crore. This deal will help the company to pare its debt. On the other side, the deal with help Sajjan Jindal-led JSW Energy realising its objective of having 12,000 MW power generation capacity by 2025 eventually.
At present, JSW Energy's generation capacity is 4,531 MW which will be increased to 5,531 MW after this acquisition.
Updated Date: Mar 22, 2016 11:45 AM