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The Jaypee Group is in talks with Abu Dhabi National Energy Company PJSC (TAQA) to sell its hydro-power projects.
Last week, the group, with interests ranging from engineering and construction to cement and sports, sold its Gujarat cement unit for Rs 3,800 crore to the Aditya Birla Group’s UltraTech Cement.
“Talks are in advanced stages and the deal is likely to be concluded in the current financial year. TAQA is also contemplating over whether a private equity investor can be roped in to buy the projects,” a source privy to the development told Business Line .
The Jaypee Group has three operating hydro-power projects under Jaiprakash Power Ventures Ltd.
These include 300 MW Baspa II (Himachal Pradesh); 400 MW Vishnuprayag (Uttarkhand) and 1,000 MW Karcham-Wangtoo (Himachal Pradesh). If the deal goes through, the new buyers will pay for the equity infused into the projects and would also take over the debt.
According to the source, the terms of the agreement for the Vishnuprayag power station are yet to be decided.
The project, located across river Alaknanda at Chamoli in Uttarakhand, was destroyed during the floods and landslides in June.
According to another industry official, the Jaypee Group has total debts of over Rs 50,000 crore. Of this, more than Rs 20,000 crore is on the books of Jaiprakash Power Ventures.
The Group is aiming to pare its debt by at least Rs 15,000 crore in the current fiscal, the official said.
The company has assets of more than Rs 80,000 crore across its businesses. It also has land assets in Delhi and surrounding areas, which it may sell.
When contacted, Jaiprakash Power Ventures declined to comment. On September 10, the company informed the BSE that it was committed to unlock and enhance shareholder value through various options including, if necessary, sale of some of its undertakings.
“This is a continuous exercise and, as and when any such transaction materialises, we shall make appropriate announcement through the stock exchanges,” Jaiprakash Power Ventures had said.
TAQA increased its total capacity in India to 350 MW last December, when it acquired an interest in a hydro-electric plant in Himachal Pradesh.
The 100-MW facility is expected to begin operations later this year, the spokesperson said.
TAQA is also expanding capacity at its lignite power plant in the Neyveli region of Tamil Nadu from 250 MW to 550 MW.
siddhartha.s@thehindu.co.in
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