JSW Energy arm signs pact with Rel Power to buy wind project for Rs 132 cr

JSW Energy's arm JSW Renewable Energy has signed an agreement with Reliance Power to acquire its 45 MW wind power project in Vashpet, Maharashtra, for Rs 132 crore.

JSW Renewable Energy (Coated) Limited is a wholly-owned subsidiary of JSW Neo Energy Limited and a step-down subsidiary of JSW Energy Limited, which is engaged in the business of renewable power generation, Reliance Power said in a regulatory filing.

"Reliance Power signs sale agreement with JSW Renewable Energy for the sale of its 45 MW wind power project in Vashpet, Maharashtra, for a consideration of Rs 132 crores," it added.

The deal is likely to be completed by May 21, 2024.

"The proceeds from the sale will be used to retire the debt. Reliance Power is aiming to be a debt-free company by the end of this financial year. The total debt of Reliance Power as of March 31, 2023, was around Rs 700 crore," according to company sources.

Reliance Power has been settling its debt with the banks. In the last 3 months, it has settled its debt with three banks -- DBS Bank, ICICI Bank, and Axis Bank, they added.

The unit has been operational since June 2013 and it has a power offtake agreement with Adani Electricity, sources said.