JSW Energy in talks with GMR to buy Kamalanga power project in Odisha

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Mumbai | Published: October 8, 2019 6:54:17 AM

JSW Energy, a Sajjan Jindal-led company, has entered into exclusive talks with GMR Energy for a potential acquisition of the later’s subsidiary GMR Kamalanga Energy which operates a 1050-MW power project in Dhenkanal, Odisha.

JSW Energy generates 4,541 MW of power per year, of which 3140 MW is thermal, 1,391 MW is hydropower, and 10 MW is solar.

JSW Energy, a Sajjan Jindal-led company, has entered into exclusive talks with GMR Energy for a potential acquisition of the later’s subsidiary GMR Kamalanga Energy which operates a 1050-MW power project in Dhenkanal, Odisha.

“Both parties intend to conclude these discussions in an expeditious manner,” JSW Energy said in a statement to the stock exchanges.

GMR Kamalanga Energy has a 1,050 megawatt (3×350 MW) operational coal-based power plant located at Kamalanga village in Dhenkanal. It has fuel linkages with Mahanadi Coal Fields, a subsidiary of Coal India, and a long-term power purchase agreement with Grid Corporation of Odisha, Uttar Haryana Bijli Vitran Nigam as well as Bihar State Electricity Board.

The acquisition will help JSW Energy to take a step towards meeting its planned target of 10,000 MW by 2024, while it will help GMR Infrastructure to reduce its debt under the ‘asset light asset right’ strategy. JSW Energy generates 4,541 MW of power per year, of which 3140 MW is thermal, 1,391 MW is hydropower, and 10 MW is solar.

Earlier in 2015, JSW Energy bought two hydro power plants from Jaiprakash Power Ventures for Rs 9,700 crore. However, in July 2019, the company terminated a business agreement signed in 2016 with Naveen Jindal-led Jindal Steel and Power to acquire its 1,000-MW thermal power plant in Chhattisgarh.

JSW Energy’s consolidated net worth and consolidated net debt as on June 30 were Rs 11,928 crore and Rs 10,221 crore respectively, resulting in a net debt-to-equity ratio of 1 to 0.86.

As on March 31, GMR Energy held 87.42% stake in GMR Kamalanga, while 10.21% was held by India Infrastructure Fund (IIF), a fund managed by IDFC Project Equity Company, and 2.37% stake by IDFC.

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