Reliance CleanGen, a 100% subsidiary of Reliance Power, has signed an exclusive memorandum of understanding (MoU) for the purchase of the entire hydro power portfolio of Jaiprakash Power Ventures, a subsidiary of Jaiprakash Associates.

Under the terms of the MoU, Reliance Power will acquire Jaiprakash Power Ventures’ three operating hydro power plants with an aggregate capacity of nearly 1,800MW and asset size of more than INR100bn ($1.66bn).

The MoU follows withdrawal of TAQA India Power Ventures from an agreement with Jaiprakash Power Ventures for the sale of Baspa II and Karcham Wangtoo hydro-electric projects in Himachal Pradesh, India.

Jaypee Group Executive Chairman Manoj Gaur said: “It is unfortunate that the Abu Dhabi based company TAQA has decided to undo its agreement with Jaiprakash Power Ventures Ltd to buy 1,000MW Karcham Wangtoo and 300MW Baspa II projects due to a change in their business strategy and priorities.

“The MoU follows withdrawal of TAQA India Power Ventures from an agreement with Jaiprakash Power Ventures.”

“This will, however, not impact our group’s commitment to reduce debt to Rs45,000 by March 2015. We have created valuable assets and we are confident to get investors to help us raise funds in the near future.”

Featuring run-of-the-river technology to eliminate the need for a large reservoir, the three power plants, with an estimated asset life of more than 50 years, include the 300MW Baspa Stage II project, 1091MW Karcham Wangtoo project in Himachal Pradesh and the 400MW Vishnuprayag project in Uttarakhand.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Power Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reliance Power, upon completion of the proposed transaction, is expected to become the largest provider of hydroelectric power in the private sector in India.

The proceeds from the transaction, which is subject to approvals, will be used by Jaypee Group to reduce its consolidated debt.

Currently, Reliance Power has hydroelectric power projects aggregating more than 5,000MW under development, of which 4,200MW are located in Arunachal Pradesh, 700MW in Himachal Pradesh and 400MW in Uttarakhand.