JPVL focus to shift on coal-based assets: JPVL sold its ownership in two operational assets—Baspa (300 MW) and Karcham Wangtoo (1,000 MW) —for an asset value of about Rs.100 bn, of which equity value is Rs.38 bn while the balance debt would be assumed by the acquirer.
Upon conclusion of the current transaction, JPVL will have a debt of Rs.166 bn (assuming entire proceeds are used to retire debt), that will have to be serviced from ramp-up of the coal-based projects—Bina (500 MW) and Jaypee Nigirie (1,320 MW) as well as resumption of Vishnuprayag (400 MW) that has been shut down for most of FY14 on account of the flood.
Meanwhile, Jaiprakash Power Ventures Limited informed on 16th April, 2014 that it's 400 MW Vishnuprayag Hydro Power Plant, which was shut down due to unprecedented floods of very high intensity in the Alaknanda river on June 16th 2013, has resumed power generation w.e.f. April 12th 2014. There are also rumours that the promoters have good connection with Satish Chandra Mishra, a member of Rajya Sabha and General Secretary in Bahujan Samajh Party. It is a known fact that BJP has a history of forming coalition governments with the BSP. If NDA comes to power, then we could see, similar moves from the either parties.