JP Power shareholders clear Rs.1,000 crore for UP project

Jaiprakash Power Ventures Ltd (JPVL) on Monday said its shareholders have approved a Rs.1,000 crore investment in subsidiary Prayagraj Power Generation Company Ltd (PPGCL) for setting up a 1,980 MW thermal power plant at Bara in Uttar Pradesh's Allahabad district.

Of PPGCL's total paid-up capital of of Rs.3,123 crore, JPVL has already made an equity investment worth 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.

In a filing to the Bombay Stock Exchange, JVPL said that shareholders 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 the Sajjan Jindal-led JSW Energy Ltd.

"The company had paid $50 million upto March 31, 2015 and now a further sum of $75 million has been paid to the bondholders upon sale of securities of the company's subsidiary Himachal Baspa Power Company Ltd (HBPCL) to M/s. JSW Energy Ltd," JPVL informed the stock exchange.

Earlier this month, JSW Energy said the acquisition has given it complete control over the 300 MW Baspa II and 1091 MW Karcham Wangtoo hydro electricity projects.

The company said an additional consideration of Rs.300 crore may become payable upon receipt of certain additional consents and approvals related to the Karcham Wangtoo project before September 6, 2020.

JSW Energy has also entered into an initial agreement with Jaiprakash Power Ventures to acquire 100 percent stake in the 500 MW Bina thermal power plant located in Sagar district in Madhya Pradesh.

"The plan to acquire the Bina power project will further strengthen the business model as also enhance our capacity to over 5,000 MW," JSW Energy chairman Sajjan Jindal said in a statement.