Reliance Power to acquire all hydro projects of Jaypee group
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Reliance Power to acquire all hydro projects of Jaypee group

Last Updated: Sunday, July 27, 2014, 19:30
 
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Reliance Power to acquire all hydro projects of Jaypee group
New Delhi: Anil Ambani Group firm Reliance Power Sunday said it has signed an initial agreement to acquire all the three hydroelectric power plants of Jaiprakash Associates Ltd.

"Reliance CleanGen Ltd (RCL), a 100 percent subsidiary of Reliance Power Ltd, and Jaiprakash Power Ventures Ltd (JPVL), a subsidiary of Jaiprakash Associates Ltd (JAL), today announced the signing of an exclusive Memorandum of Understanding (MOU), for the 100 percent acquisition by RCL of the entire hydroelectric power portfolio of JPVL," the company said in a statement here.

JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs 10,000 crore.

The portfolio comprises of the three plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir.

JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet, Reliance Power said.

"The completion of the proposed transaction would make Reliance Power the largest provider of hydroelectric power in the private sector in India," it added.

Currently, Reliance Power has hydroelectric power projects aggregating over 5,000 MW under development, of which 4,200 MW are located in Arunachal Pradesh, 700 MW in Himachal Pradesh and 400 MW in Uttarakhand.

SBI Capital Markets Ltd are acting as advisors for the proposed Transaction.


PTI

First Published: Sunday, July 27, 2014, 19:30


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