Jaiprakash Power Ventures Ltd (JPVL) Sunday said it has signed an agreement with Jindal Group vertical JSW Energy for sale of two hydro-electric projects in Himachal Pradesh for about Rs.9,700 crore.
The JPVL board has "approved the transfer of businesses in relation to two of the company's operating power plants, namely 300 MW Baspa-II Hydro-Electric Plant (commissioned in 2003) and 1091 MW Karcham Wangtoo Hydro-Electric Plant (commissioned in 2011), both located in Himachal Pradesh on a going concern basis to Himachal Baspa Power Company Ltd," it said in a statement here.
"Jaypee Group continues to be on course to bring down its debt and consolidate its operations in the given economic scenario," the statement said.
"JPVL is in advanced stages of implementation of 3X660 MW Bara Thermal Power Project which shall achieve commissioning by July 2015 taking JPVL's installed capacity to 4,200 MW," it added.
In a separate statement, JSW Energy said: "The acquisition will yield immediate cash flow and is expected to enhance JSW Energy's consolidated profitability and returns and create significant synergies."
"The acquisition will make JSW Energy as the largest private sector hydro-power generator in the country. The aggregate installed power generation capacity of JSW Energy will enhance to 4,531 MW," it added.
