Tata Power today said it has terminated an agreement with Nagpur-based Ideal Energy Projects to acquire a 270 MW coal-based power project in Maharashtra due to non-fulfilment of certain conditions.
In a regulatory filing, the company announced “termination of a share purchase agreement (SPA) with Ideal Energy Projects Ltd for acquisition of 100 per cent stake in a 270 MW coal based thermal power project in Maharashtra, extendable to 540 MW”.
The two firms had in December 2014 reached an agreement on the project.
“As per the terms of SPA, the acquisition was subject to fulfilment of certain conditions precedent. The company made all efforts to arrive at a workable solution to salvage a stressed asset along with key stakeholders. However, the stakeholders could not conclude, leading to non-fulfilment of the aforesaid condition precedent,” it said.
It, however, did not specify the conditions.
“In view of this, the company has decided not to pursue this opportunity any further and confirm the termination of the SPA,” Tata Power said.
Ideal Energy owns a 540 MW thermal power plant near Nagpur in Maharashtra, of which 270 MW was commissioned in May 2013.
Tata Power together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 8,699 MW.
It has set a target of generating 18,000 MW by 2022.
Shares of Tata Power ended nearly 1 per cent higher at Rs 61.80 on the BSE.