Jindal Steel and Power (JSP) Limited has acquired debt-laden Monnet Power for Rs 410 crore through insolvency route, a company official said on Thursday. The transaction for the Odisha-based 1,050 megawatt power asset was completed on Wednesday, Kapil Mantri, head of strategy at JSP told PTI.
“We have won the bid for Rs 410 crore for liquidation of power plant of Monnet Power via NCLT route,” he said. The new asset will provide power to JSP’s steel plant in Angul, which is in expansion mode, Mantri said.
Replying to a question related to the operations of the power plant, he said it is an under-construction project and his company aims to make it operational within next one year infusing fresh investments. “We still have to estimate the investment needed to make the plant operational. This asset will use 25 per cent less coal helping in low carbon emissions,” the company official said.
Coal will be sourced from Uktak C, B1 and B2 mines of JSP. Part of OP Jindal Group, JSP has a significant presence in the steel, power, and mining sectors with an investment of Rs 90,000 crore across the globe.