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Monday, December 01, 2014
JSW acquires 100% stake in Baspa and Karcham Wangtoo hydro power plant
Mumbai | November 17, 2014: After the deal with Reliance CleanGen failed to take off, JSW Energy has now successfully acquired two of Jaiprakash Power Ventures' hydro power plants. The combined capacity of these two power plants is 1,391 MW and comes at a price tag of Rs 9,700 crore.
Jaiprakash Power Ventures, a fully owned subsidiary of the Jaypee group, earlier this year had put up its entire hydro power portfolio for sale. The plants included the 300-Mw Baspa-II hydroelectric plant, 1,091-Mw Karcham Wangtoo plant and 400 MW Vishnuprayag.
Although JSW is acquiring the Baspa and Karcham Wangtoo plant , acquisition of these two assets will make JSW Energy the largest hydroelectric power producer in the country with an operating portfolio of 1,300 MW. The new entity will be called Himachal Baspa power.
The proposed acquisition in the state of Himachal Pradesh is a strategic fit to the company and will enable it to establish its presence in the state where it is also setting up 240 MW hydro electric project at Kutehr. The Baspa and Karcham project have a estimated life of over 29 and 37 years respectively and are extendable to 20 more years.
Axis Capital Limited & SBI Capital Markets Ltd. Were the financial advisors to JSW for the transaction. Amarchand & Mangaldas & Suresh & Co. Were the legal advisors to the company. PWC carried out the financial and tax due diligence and Lahmeyer International Private Ltd. Carried out the technical due diligence.