JP Power shareholders clear Rs 1,000 cr for Bara project

Company also gets nod for sale of its entire stake in Himachal Baspa Power for Rs 9,700 cr to JSW Energy

Jaiprakash Power Ventures Ltd today said its shareholders have approved Rs 1,000 crore investment in its subsidiary PPGCL for setting up a 1,980 Mw thermal power plant.

Shareholders, through postal ballot, have also approved sale of the company's entire stake held in Himachal Baspa Power Company Ltd (HBPCL) for about Rs 9,700 crore as per an agreement on November 15, 2014 with JSW Energy, the company said in a BSE filing today.

The HBPCL which has two operating hydro power assets-300 Mw Baspa-II Hydro electric project (HEP) and 1,091 Mw Karcham Wangtoo HEP.

According to the statement, shareholder have also approved the proposal to shift registered office of the company from Himachal Pradesh to Madhya Pradesh.

The company's Prayagraj Power Generation Company Ltd (PPGCL) is implementing 1,980 Mw (3X660 Mw) thermal power plant at Bara in district Allahabad in Uttar Pradesh.

Out of the total paid up capital of PPGCL of around Rs 3,123 crore, JPVL has already made equity investment of Rs 2,783 crore.

JPVL is investing Rs 1,000 crore more in PPGCL to meet the revised project cost of Rs 13,780 crore.