Sajjan Jindal-led JSW Energy is believed to be holding talks to acquire two-coal based power projects from Manoj Gaur-led JP Group in Madhya Pradesh, India.
If the deal is signed, JSW Energy will acquire the JP Power’s Bina and Nigrie thermal power projects at an estimated cost of INR 90bn-100bn ($1.6bn).
Hindustan Times quoted a JP Power executive as saying: "There are many discussions which happen but we have not firmed up anything with JSW for any of our projects."
JSW Energy senior executive said that the company is considering various options and "is yet to firm up plans of taking over-specific assets."
JP Group owns 49% stake in the 1,320MW Nigre thermal power project in Madhya Pradesh, while the remaining interest is owned by the Madhya Pradesh State Mining.
The 500MW Bina thermal power project is fully owned by JP Group.
The Bina thermal power plant is expected to have an enterprise value of INR35bn ($574.4m) while the Nigrie power project is estimated to be over INR90bn ($1.47bn), provided the coal JV with the state of Madhya Pradesh is part of the latest deal.
JSW Energy said in a statement: "The Company continues to evaluate various opportunities, both organic and inorganic, as part of its growth strategy. However, the Company is not in any conclusive discussions for any particular project at this stage."
Additionally, JSW Energy is said to be holding negotiations to replace Jaiprakash Associates (JAL) with Madhya Pradesh State Mining Corporation Limited (MPSMCL) from the 49:51 joint venture for the coal requirements of the Nigrie facility, The Economic Times reported.
Recently, JSW lost the race to purchase the hydro assets of JP power and the 1200-MW Udupi power plant from Lanco Infratech. The hydro assets were ultimately bought by Reliance Power for INR120bn ($1.96bn), while the Udupi plant was purchased by Adani Power for INR60bn ($984.8m).
Several infrastructure firms, which forayed into power projects, have been looking for buyers as many of these projects are stuck in debt due to lack of sufficient fuel, and clearances.
According to the Hindustan Times report, the GMR Group, Lanco Infratech and Abhijeet Group are also scouting for buyers for their power projects.
Image: Several infrastructure firms in India that forayed into power projects have been looking for buyers. Photo: courtesy of khunaspix/Freedigutalphotos.net