JSW Energy will acquire GMR's Kamalanga power project in Odisha for 5321 crore. In a notice to exchange JSW said it had entered into a 'share purchase agreement' with GMR Energy for acquiring 100 percent shares in its subsidiary GMR Kamalanga Energy.
Post acquisition,the total installed power generation capacity of JSW Energy will increase to 5,609 Mw. "This will expand the company's presence in the eastern regio of the country and further diversify its fuel mix and off take arrangements the company said.
Kamalanga is one the 36 identified stressed power assets that was undergoing debt resolution. The project was commissioned in 2014 and ran into trouble because of lack of coal supply. The coal block allotted to the project was cancelled by a supreme court judgement in the same year. It also didn't get any coal supply linkage from the Centre.
Built at a cost of 6,000 crore, it had debt of 4,100 crore. The project has power purchase deal with Haryana, Odisha and Bihar.
GMR Group has been selling its assets to offload debt. It recently sold one of its power projects to Adani Power. Lenders to GMR Chattisgargh Energy approved the bid by Adani Power for the project in a bidding outside the National Company Law Tribunal.
The project has a debt of over 5800 crore. It ran into problem due to absence of long term power purchase agreements except a short term deal with Gujarat. At Group level, GMR would see reduction in debt exposure of equivalent quantum. The company's another unit in Maharashtra's Warora plant is also searching for buyers.
Post acquisition,the total installed power generation capacity of JSW Energy will increase to 5,609 Mw. "This will expand the company's presence in the eastern regio of the country and further diversify its fuel mix and off take arrangements the company said.
Kamalanga is one the 36 identified stressed power assets that was undergoing debt resolution. The project was commissioned in 2014 and ran into trouble because of lack of coal supply. The coal block allotted to the project was cancelled by a supreme court judgement in the same year. It also didn't get any coal supply linkage from the Centre.
Built at a cost of 6,000 crore, it had debt of 4,100 crore. The project has power purchase deal with Haryana, Odisha and Bihar.
GMR Group has been selling its assets to offload debt. It recently sold one of its power projects to Adani Power. Lenders to GMR Chattisgargh Energy approved the bid by Adani Power for the project in a bidding outside the National Company Law Tribunal.
The project has a debt of over 5800 crore. It ran into problem due to absence of long term power purchase agreements except a short term deal with Gujarat. At Group level, GMR would see reduction in debt exposure of equivalent quantum. The company's another unit in Maharashtra's Warora plant is also searching for buyers.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.