JSW Energy Thursday entered into a binding memorandum of understanding (MoU) with the Jaiprakash Group to acquire three of its power plants with a total installed capacity of 1,891 MW.
The announcement comes a day after Reliance Power pulled out of the same deal due to regulatory and valuation issues, among other concerns.
According to Jaiprakash Group, JSW will acquire the three operational plants namely the 300 megawatt (MW) Baspa-II hydro electric plant, 1,091 MW Karcham Wangtoo hydro electric plant and 500 MW Bina thermal power plant.
Earlier, Reliance Power had signed an exclusive MoU to acquire 100 percent of the entire hydro power portfolio of Jaiprakash Power Ventures in July this year.
On March 1, 2014, the company had signed another agreement with Abu Dhabi-based Taqa to sell two hydro power projects for an enterprise value of Rs.9,689 crore. However, the deal did not go through.
The current deal is expected to give a boost to the group's commitment to reduce debt to about Rs.45,000 crore by March 2015.
