Jaypee Group among 8 firms interested in power project in Himachal Pradesh

[Editor: This shows the depth of the company's firmness in dealing with the current situation and also the commitment of the promoters, to create value for the shareholders; even though a section of the so-called TV analysts, cry hoarse on its fundamentals. We should remember that in any stock market one should always have a vision and have the ability to asses the future of any company; in order to make good profit. Taking Buy/Sell decision based on the current set of fundamentals, is simply boorish and unattractive. Premium Members (those who booked profits at higher levels) were today again suggested to enter the counter around Rs.14.15-14.20. Now the next target for the scrip is Rs.17. The same holds true for Jaiprakash Associates Ltd (Rs.32.80). Earlier, in a filing to BSE, Jaiprakash Power said the Abu Dhabi company is liable to pay a break fee as per the deal agreement after they withdrew from an agreement to purchase two of its hydropower plants in Himachal Pradesh. Therefore, the company infact gained from the process. Also, Karcham Wangtoo (1000 MW) hydropower project in Kinnaur District of Himachal Pradesh isIndia’s largest Hydropower Project, in the Private Sector. Hence, you can understand, you are buying the stocks of which company!!]

Nov 6, 2014: SHIMLA: Around eight companies have shown interest in the 960MW Jangi-Thopan-Powari hydropower project proposed in Kinnaur district of Himachal Pradesh. Among those are Jaypee Group, which is already trying to sell its two hydropower projects - Karchhwam Wangtoo and Baspa-II - situated in Kinnaur district.

Interest shown by Jaypee group has left many surprised as the company is already trying to sell its two projects in Kinnaur. Jaiprakash Power Ventures Limited (JPVL), a subsidiary of Jaypee Group, had entered into an agreement for the sale of 1,000MW Karcham Wangtoo and 300MW Baspa-II projects in Kinnaur district with Abu Dhabi National Energy Company PJSC (TAQA) but the latter had opted out of the around Rs 10,000 crore deal. Himachal Pradesh government had also opposed the deal. Sources said that now, Jaypee is trying to enter into a deal with Jindal group for the two projects.

Sources said that around eight companies have shown their interest in the proposed project and their officials had recently held meeting with officials from Directorate of Energy about terms and conditions and rules. Sources said that these companies would soon participate in the financial bidding. Jangi-Thopan-Powari project is pending before Supreme Court, and it is on the direction of Apex Court that state government has invited pre-bids for the project.

Official sources said that companies showing interest in the project includes Tata Power, Adani, Raliance, Jaypee Group, HSW, SJVNL, NBCC and Uflex. Sources said that with big companies showing interest, the department would invite financial bids shortly only after that it would become clear which company is selected by the government for the project.

The state government had earlier allotted the project to Brakel Corporation as two separate entities of 480MW each as Jangi-Thopan and Thopan-Powari through competitive global bidding process. But on April 23 2013, the cabinet decided to re-bid the Jangi-Thopan and Thopan-Powari projects as a single Jangi-Thopan-Powari project of 960MW capacity as per the new hydel policy. Official sources said that allotment of Jangi-Thopan-Powari project would fill coffers of the state government as upfront premium of around Rs 1,000 crore is expected from it.

Courtesy: The Times of India