JSW To Take Over 100% Stake In Kamalanga Power Plant In Odisha

Bhubaneswar: JSW Energy has announced that it will take over 100 per cent stake in the 1,050-MW Kamalanga thermal power plant in Odisha’s Dhenkanal district for Rs 5,321 crore.

At present, the plant is owned by GMR Kamalanga Energy (GKEL), the business unit of GMR Infrastructure.

After the acquisition, JSW Energy’s installed power generation capacity would reach 5,609 MW.

About 84 per cent of the plant’s capacity supplies electricity to Odisha, Haryana and Bihar under long-term power purchase agreements.

It also has adequate coal supply arrangements from nearby mines, reducing fuel costs and resulting in lower risks of under-recoveries.

The deal will help GMR Infrastructure cut its debt of Rs 4,141 crore which the company owes to IDFC (lead lender), SBI, IDBI, Canara Bank and UCO Bank. GMR had infused equity of Rs 2,250 crore into this power plant.

The price to be paid is subject to working capital and other adjustments and the transaction shall be subject to customary regulatory and other approvals for its completion, JSW said on Monday.

Sector experts pointed out that JSW, with its strong balance sheet, is expected to reduce borrowing costs and improve the cost economics of the plant.

JSW Energy is also eyeing acquisition of the 700 MW Ind-Barath (Utkal) plant through the National Company Law Tribunal (NCLT) route. It expects to complete the Utkal plant deal by the second quarter of the 2020-21 financial year.

Get real time updates directly on you device, subscribe now.

Comments are closed.