JSW Energy enters share purchase deal with GMR Energy
Post-acquisition, the total installed power generation capacity of JSW Energy will increase to 5,609 MW
JSW Energy has entered into share purchase agreement with GMR Energy for acquiring 100 percent shares in its subsidiary GMR Kamalanga Energy.
JSW Energy will acquire GMR Kamalanga Energy’s Kamalanga power project with a capacity of 1,050 MW (three x 350 MW) located at Kamalanga in Dhenkanal district of Odisha entailing an investment of Rs 5,321 crore.
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 region of the country and further diversify its fuel mix and off take arrangements.
Kamalanga power project 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 judgment in the 2014. It also didn’t get any coal supply linkage from the Centre. Built at a cost of Rs 6,000 crore, it had a debt of Rs 4,100 crore. The project has power purchase deal with Haryana, Odisha and Bihar.
Of the total 36 identified stressed assets in the power sector, seven have been resolved through various debt-restructuring schemes by lenders.