JSPL shareholders approve sale of 1000 MW power plant to JSW

Shareholders of Naveen Jindal-Led Jindal Steel and Power (JSPL) today approved sale of 1,000 MW power plant in Chhattisgarh to brother Sajjan Jindal's firm, JSW Energy.
JSPL had sought its shareholders approval to the deal through postal ballot.
JSPL said its shareholders have approved the resolution of "divestment of the 1000 MW Power unit of Jindal Power Ltd into a special purpose vehicle (SPV) for the purpose of transferring the same to JSW Energy, with an overarching aim of garnering value for our equity shareholders".
In May, JSW Energy inked an agreement to acquire the power plant, situated in Raigarh, from heavily indebted JSPL.

According to the deal, JSW will pay at least Rs 4,000 crore, excluding net current assets, and an additional Rs 2,500 crore if JSPL's 1,000 MW power plant in Raigarh, Chhattisgarh secures a long term power purchase agreement.
Earlier this month, fair trade regulator the Competition Commission of India (CCI) had also approved the deal.
Shareholders also approved the proposed transfer of 920 MW captive power plants to JPL, a subsidiary of JSPL, with an aim of consolidating power assets under a single entity to reap in more operational and cost efficiencies, it added..
They also gave their nod to the transfer of JSPL's registered office from Hisar (Haryana) to Raigarh (Chhattisgarh), the area of operation for JSPL, in order to bring in more efficiency amongst all concerned stakeholders, JSPL said.