Jaiprakash Said in Talks to Sell Two India Power Plants to Taqa
The plants in Himachal Pradesh in Northern India, which generate a combined 1,300 megawatts of power, may fetch about 130 billion rupees ($2.1 billion) including debt, said another person familiar with the proposed sale, who asked not to be identified because the negotiations are private.
Jaiprakash Power, a subsidiary of Jaiprakash Associates Ltd. (JPA), is trying to reduce debt that swelled to 228 billion rupees as of March 31 from 68 billion rupees two years earlier. Last month, Jaiprakash Associates agreed to sell a cement unit to UltraTech Cement Ltd. (UTCEM)
Abu Dhabi National Energy, the United Arab Emirates-based utility known as Taqa, increased capacity in India to 350 megawatts when it bought a stake in a hydroelectric plant developed by Himachal Sorang Power Ltd., according to its website.
Spokesmen for both companies declined to comment. The Hindu Business Line reported on the talks last month, citing an unidentified person.
Jaiprakash Power would need approval from India’s Ministry of Environment for the deal, one of the people said. Jaiprakash Power may fail to reach a deal with Taqa and another bidder for the two power plants could emerge, one person said.
To contact the reporter on this story: George Smith Alexander in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Philip Lagerkranser at email@example.com