TAQA to buy JP Power's 2 hydel plants for Rs 10,000 cr

Abu Dhabi National Energy Company (TAQA) led consortium will acquire Jaiprakash Power Ventures' two hydroelectric power plants for about Rs 10,000 crore (USD 1.6 billion), TAQA said today.

"The total enterprise value of the two assets is approx USD 1.6 billion (approx Rs 10,000 crore). The amount of equity being invested by the consortium is approx USD 616 million (Rs 3,820 crore)... The remainder is primarily non-recourse project debt," a TAQA spokesperson said in an e-mailed reply to a PTI query.

Earlier, TAQA had said in a statement that through a consortium it will acquire Jaiprakash Power Ventures' two hydro-electric power plant, Baspa Stage II and Karcham Wangtoo, having 1,391 MW capacity.

"The equity invested by the consortium in the acquisition of the two hydroelectric plants will amount to approximately Rs 3,820 crore (USD 616 million, based on March 1, 2014 foreign exchange rate), of which 51 per cent is from TAQA.

"The consortium will also acquire the assets' non-recourse project debt," said TAQA, which is the brand name of Abu Dhabi National Energy Company.

TAQA holds 51 per cent stake in the consortium and will have control of operations and management of both the plants under the proposed deal, it said.

Its consortium partners include one of Canada's largest institutional investors, whose name was not disclosed (39 per cent stake) and IDFC Alternatives' India Infrastructure Fund II (10 per cent stake).

The two plants have a combined power generation capacity of 1,391 MW and are located in Kinnaur district, Himachal Pradesh, within two km of each other. They share support facilities and use run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a reservoir.

The plants are 35 km from the Sorang hydroelectric plant, in which TAQA acquired stake last year.

According to TAQA, the acquisition will make it the largest private operator of hydroelectric plants in India. Post completion of the deal, its gross operational power generation capacity in India will rise to 1,741 MW, comprising of 3 hydel power and one lignite plants.

TAQA's Executive Officer and Head of Global Power & Water Frank Perez said: "India’s economic growth depends on having ample and reliable energy supply. TAQA is pleased to add these two high quality hydro power assets to our growing India business and to support India’s economic growth."

The acquisition is expected to close in 2014 and is subject to regulatory and third party approvals, TAQA said.

Jaiprakash Power Ventures Ltd is a subsidiary of Indian infrastructure conglomerate Jaypee Group. In recent times, the Jaypee group has been on a debt-pruning spree.

In September 2013, it had sold a cement plant in Gujarat to Aditya Birla group's UltraTech having an enterprise value of Rs 3,800 crore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Drive your faith to awaken your soul

Most of us know about Abraham Maslow’s ‘self-actualised’ individual or ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture