Abu Dhabiís Taqa consortium to buy JPís two hydel plants for Rs 10,000 cr

Mar 03 2014, 04:46 IST
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SummaryThe total enterprise value of the two assets is approximately $1.6 billion...

Abu Dhabi National Energy Company- (TAQA) led consortium will acquire Jaiprakash Power Venturesí two hydroelectric power plants for about Rs 10,000 crore ($1.6 billion), TAQA said Sunday.

"The total enterprise value of the two assets is approximately $1.6 billion (approximately Rs 10,000 crore). The amount of equity being invested by the consortium is approx $616 million (Rs 3,820 crore)... The remainder is primarily non-recourse project debt," a TAQA spokesperson said in an e-mailed reply.

Earlier, TAQA had said in a statement that through a consortium it will acquire Jaiprakash Power Ventures' two hydro-electric power plant, Baspa Stage II and Karcham Wangtoo, having 1,391 MW capacity.

"The equity invested by the consortium in the acquisition of the two hydroelectric plants will amount to approximately Rs 3,820 crore ($616 million, based on March 1, 2014 foreign exchange rate), of which 51% is from TAQA.

"The consortium will also acquire the assets' non-recourse project debt," said TAQA, the brand name of Abu Dhabi National Energy Company.

TAQA holds 51% in the consortium and will have control of operations and management of both the plants under the proposed deal, it said.

Its consortium partners include one of Canada's largest institutional investors, whose name was not disclosed (39%) and IDFC Alternatives' India Infrastructure Fund II (10% stake).

The two plants have a combined power generation capacity of 1,391 MW and are located in Kinnaur district, Himachal Pradesh, within two km of each other. They share support facilities and use run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a reservoir.

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