JSW Energy Ltd. agreed to buy a controlling stake in Monnet Ispat & Energy Ltd.’s 1,050-megawatt power plant that is under construction in India’s east, Monnet said in a stock exchange filing Thursday.
The plant, located in Odisha state, is six months from completion and has a captive coal mine, Monnet’s New Delhi-based President Amitabh Mudgal said by phone.
The sale is part of Monnet’s plans to distance itself from the power business and focus on its core steel business, which is in a “deep depression,” Mudgal said.
Monnet reported a loss of 8.6 billion rupees ($136 million) in the year ended March 31, its first annual loss in at least a decade.
JSW Energy in November agreed to buy two hydropower plants of Jaiprakash Power Ventures Ltd.
Financial terms of the latest transaction weren’t disclosed in the statement.