Jaypee Group inks pact to sell 3 power plants to JSW energy

Jaypee Group on Thursday, in its third attempt to strike a deal for its power assets, inked a binding pact with JSW Energy for selling three projects, including two hydel plants.

The announcement came 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.

While financial details of the deal were not disclosed, the companies sai the plants under the deal were - 300 MW Baspa-II Hydro Electric Plant, 1,091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant.

Jaypee Group was looking to sell the hydro projects to cut its nearly Rs 12,000 crore debt. JPVL and Reliance Power had been in talks for two months before calling off the deal.

In July, Reliance Power signed an initial agreement to acquire all the three hydroelectric power plants of JPVL.

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.

Shares of Jaiprakash Power Ventures surged nearly 9 per cent on Friday on the Bombay Stock Exchange (BSE), to trade at Rs 12.80 per scrip in morning trade.