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JSW Energy on Thursday announced the signing of a non-binding agreement with Monnet Ispat for initiating due diligence for acquisition of majority stake in Monnet Ispat and Energy’s 1,050-Mw power plant in Odisha.
The plant is being developed by group subsidiary Monnet Power Company Ltd. The deal will help Monnet Ispat reduce its debt.
Adani Group was also interested in acquiring stake in Monnet power plant, according to media reports.
“We have signed an MoU (memorandum of understanding) and we will carry out detailed due diligence. Any decision to purchase it or not will be taken after completion of the process. We expect it to be completed in 45-60 days. The power plant is under construction and will be completed in 18 months,” said Sanjay Sagar, chief executive of JSW Energy.
JSW’s energy capacity stands at 3,140 Mw. In September 2014, it had signed an MoU with Jaiprakash Power Ventures to acquire 1,891 Mw of power assets. The agreement covered three plants — the 300-Mw Baspa stage-II plant, the 1,091-Mw Karcham Wangtoo plant (both hydro power plants) and the 500-Mw Bina thermal power plant.
