New Delhi: Jaiprakash Power Ventures Ltd on Monday said it plans to reduce debt by selling three hydropower plants to a subsidiary of Reliance Power Ltd, including two plants involved in a sale that collapsed last week.
The sale of Jaiprakash`s entire hydropower portfolio, which has an aggregate capacity of nearly 1,800 megawatts, would make Reliance the country`s largest private provider of hydroelectric power.
Jaiprakash in a statement said it has entered into an exclusive memorandum of understanding with Reliance CleanGen Ltd, which with Reliance Power is part of billionaire Anil Ambani`s Reliance Group Holdings Inc.
Jaiprakash did not disclose the terms of the sale.
The announcement followed the collapse last week of a plan by Jaiprakash and parent Jaiprakash Associates Ltd to sell two of the three plants for $1.6 billion to an Abu Dhabi-led consortium.
Representatives of Reliance Power could not immediately be reached for comment.
Shares of Jaiprakash Power were 5.2 percent higher in early Monday trade, compared with a flat benchmark index. Shares of Reliance were up 2.4 percent.
First Published: Monday, July 28, 2014, 10:16