Jaiprakash Power sells two hydro power plants to JSW for Rs 9,700 cr

Sajjan Jindal-controlled JSW Energy has acquired two hydro power plants, with a combined capacity of 1,391 Mw, of Jaiprakash Power Ventures, a wholly-owned subsidiary of the Jaypee Group, for Rs 9,700 crore.
 
The board of directors of Jaiprakash Power has approved the 100 per cent transfer of businesses of its operating power plants - the 300-Mw Baspa-II hydroelectric plant (commissioned in 2003) and the 1,091-Mw Karcham Wangtoo plant (commissioned in 2011), in Himachal Pradesh.
 
Jaypee’s entire hydropower portfolio of three plants was up for sale. In September 2014, JSW Energy had signed a binding MoU for acquiring Jaiprakash Power Ventures’ three operational plants, namely Baspa-II Hydro Electric Plant, Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant (Madhya Pradesh).
 
Of these, JSW has bought two with an asset value of 50 years. Since the acquired capacity is operational, this deal would add to JSW’s generation capacity, revenue, PAT (profit after tax) and Ebitda (earnings before interest, tax, depreciation and amortisation). With a total hydro asset base of 1,300 Mw, JSW is now the largest private producer of hydro power in the country.
 
The Jaypee group, the largest private player earlier, has been selling assets to lower its debt burden. The standalone debt of the group’s flagship Jaiprakash Associates stood at Rs 28,164 crore as on March 31. Its interest cost in 2013-14 had almost doubled to Rs 6,094 crore from Rs 3,134 crore a year earlier.
 
“Jaypee Group continues to be on course to bring down its debt and consolidate its operations in the given economic scenario... With this transaction, we have demonstrated that precious assets of credible promoters always evoke interest, even when the economy is facing headwind,” said Group Chairman Manoj Gaur.
 
After the acquisition, JSW Energy’s aggregate installed and operational power-generation capacity has reached 4,531 Mw.