RCL Signs MoU to Acquire 100% of Entire Hydro Power Portfolio of JPVL
OREANDA-NEWS. Reliance CleanGen Ltd. (RCL), a 100% subsidiary of Reliance Power Ltd. (part of the Anil Ambani led Reliance Group), and Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of Jaiprakash Associates Ltd. (JAL), today announced the signing of an exclusive Memorandum of Understanding (MOU), for the 100% acquisition by RCL of the entire hydroelectric power portfolio of JPVL.
JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs. 10,000 crore. The portfolio comprises of the following 3 plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir:
Plant |
Capacity (MW) |
Location |
Power Off-takers |
Baspa Stage II |
300 |
Kinnaur District, Himachal Pradesh (within 2 kilometres of each other and sharing support facilities). |
Himachal Pradesh |
Karcham Wangtoo |
1091 |
Rajasthan, Uttar Pradesh, Haryana, Punjab (Through PTC), Himachal Pradesh | |
Vishnuprayag |
400 |
Chamoli District, Uttarakhand |
Uttar Pradesh, Uttarakhand |
JAL intends to utilise the entire proceeds of the proposed Transaction to reduce its outstanding debt, and thereby deleverage its consolidated Balance Sheet.
The completion of the proposed Transaction would make Reliance Power the largest provider of hydroelectric power in the private sector in India.
In addition to the assets contemplated to be acquired under the proposed Transaction, Reliance Power has hydroelectric power projects aggregating over 5,000 MW under development, of which 4,200 MW are located in Arunachal Pradesh, 700 MW in Himachal Pradesh and 400 MW in Uttarakhand.
SBI Capital Markets Limited are acting as Advisors for the proposed Transaction.
Reliance Power Limited, part of the Reliance Group, is India's leading private sector power generation company, with Net Worth of nearly Rs. 20,000 crore, Market Capitalization of ~ Rs. 25,000 crore, and the largest family of ~ 4 million shareholders, the largest shareholder family in India. The company has the largest portfolio of power projects in the private sector in India, based on coal, gas, hydro and renewable energy, with an operating portfolio of 4,525 MW. The company also has the largest captive coal reserves in the private sector in India, estimated at 2 billion tonnes. Besides, the company is developing 3 coal mines in Indonesia with an estimated resource potential of nearly 2 billion tonnes, and is also developing Coal Bed Methane blocks.
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