In March 2014, Taqa-led consortium has agreed to buy Jaiprakash Power Ventures’ Baspa II and KarchamWangtoo hydro-electric projects in Himachal Pradesh, India.
The Hindu Business Line cited Jaypee Group senior official as saying that Taqa has pulled out of the $1.6bn acquisition deal as a result of a change in business strategy and priorities and will now pay a penalty of $9m to Jaiprakash Power.
Jaypee Group executive chairman Manoj Gaur told Indo Asian News Service (IANS): "It is unfortunate that the Abu Dhabi based company Taqa has decided to undo its agreement with Jaiprakash Power Ventures to buy 1,000 megawatt (MW) KarchamWangtoo and 300 MW Baspa II projects due to a change in their business strategy and priorities.
"This will, however, not impact our Group’s commitment to reduce debt to Rs.45,000 by March 2015.
"We have created valuable assets and we are confident to get investors to help us raise funds in the near future.
