Barely weeks after buying out two hydro power projects of JP Power for Rs 9700 crores, Sajjan Jindal is closing in to strike yet another large deal with Manoj Gaur's power company and this time its for its coal-based power assets. Sources with direct knowledge share that JSW Energy BSE -1.34 % is close to acquiring Bina and Nigrie thermal power units of JP Power. The deal is likely to value the assets around Rs 12,000 crores.
The announcement of the acquisition of Bina and Nigrie is waiting for the government's allocation of coal block to the Nigrie project which got cancelled in the Supreme Court's verdict on coal. Sources suggest that the government is expected to allocate the mines to the Public Sector Enterprises and State government units by mid-December.
As part of the deal, JSW Energy will replace Jaiprakash Associates BSE 0.34 % (JAL) from the 49:51 joint venture with Madhya Pradesh State Mining Corporation Limited ( MPSMCL) for the coal requirements of the Nigrie power plants. Nigrie Thermal Power Project in Madhya Pradesh has a capacity of 1320 MW and is valued at over Rs 9000 crores, Bina power project of 500 MW thermal power capacity is valued around Rs 2600 cr in the transaction.
Talks between Sajjan Jindal and Manoj Gaur on the thermal power assets began even before JSW Energy closed the acquisition of the hydro power assets, taking advantage of the termination of contract between Reliance Power and JP Power.
ET NOW's mail to JSW Energy went unanswered. JP Power's spokesperson in an e-mail statement said, "There is no truth in your information. No such deal is being worked out."
Source:Economic times
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