Indian energy company, JSW Energy Ltd., Tuesday said it has concluded a deal to buy the power assets of Himachal Baspa Power Co. Ltd., a Jaiprakash Power Ventures Ltd., company, for an asset value of Rs 9275 crore. It also agreed to buy another thermal power project in Madhya Pradesh from Jaiprakash Power.
The transactions mark JSW Energy’s foray into hydropower generation, and would take its power generating capacity to more than 5000 MW and is in line with JSW Energy’s strategy to have 10,000MW of power generation by 2025, the company said in a filing to the stock exchanges.
In the first transaction, JSW Energy concluded the purchase of Himachal Baspa Power Co. which has two operating hydropower assets — a 300 megawatt Baspa II HEP, and 1091 MW Karcham Wangtoo HEP.
Separately, it has also entered into a binding memorandum of understanding with Jaiprakash Power Ventures to acquire 100% stake in the 500 MW Bina Thermal Power, located in Madhya Pradesh state, the company said.
“This acquisition helps in diversifying the power generation portfolio with high quality hydro power assets, besides increasing the share of long term PPA (power purchase agreements) in our basket,” Sajjan Jindal, chairman and managing director of JSW Energy said in a statement.
As part of the hydropower deal, JSW Energy will pay Jaiprakash another Rs 300 crore, after it receives approvals and consents for the Wangtoo project, on or before September 6, 2020, it said.
The asset value for the hydro projects have been determined with Jaiprakash agreeing to transfer all profits and losses, and a compensation of Rs 150 crore, relating to its Himachal Baspa Power Co. to JSW Energy from September 1, 2015, the statement added.
