JSW Energy to buy Jaiprakash Power's Bina unit for Rs. 2,700 cr

Sajjan Jindal-promoted JSW Energy acquired the 500-megawatt (Mw) power plant of debt-laden Jaiprakash Power Ventures at Bina in Madhya Pradesh for Rs. 2,700 crore, 10 months after the two firms got into a binding agreement.

In September 2015, JSW Energy had acquired two hydropower assets of Manoj Gaur’s company for Rs. 9,700 crore in a deal that was the largest ever in the power sector. Following the deal, both companies signed a binding agreement for the Bina deal.

“The acquisition demonstrates JSW Energy’s commitment to the power sector, which is vital for the sustained economic growth of the country,” said Sajjan Jindal, chairman and managing director, JSW Energy.

Meanwhile, JSW Energy has been on an acquisition spree. In May, it announced the purchase of Jindal Steel & Power (JSPL)-owned 1,000-MW thermal power plant in Chhattisgarh for Rs. 4,000 crore, which could be increased to Rs 6,500 crore if the seller manages to get 100 per cent fuel supply and long-term power purchase agreements.

With these deals, JSW Energy will reach the total installed capacity of 6,031 Mw now. This has helped JSW Energy come closer to its ambition of achieving power generation capacity of 10,000 Mw by 2020.

“The acquisition will enable the diversification of geographical foot print and fuel source, thereby strengthening the existing business model,” said JSW Energy in a media statement.

BS