Jindal Power Limited (JPL) has assured its three hydel power projects, in a joint venture with Hydro Power Development Corporation of Arunachal Pradesh Limited (HPDCAPL), are on track. This follows the company's deal with the state government to pick up 49 per cent stake in HPDCAPL being cancelled.
"JPL and HPDCAPL continue to hold 74 per cent and 26 per cent, respectively, in the three project companies for Etalin, Attunli and Kamala projects. What has been reversed is the agreement by which our group company had acquired 49 per cent shareholding in HPDCAPL by mutual understanding," Jindal Power said, in response to a questionnaire sent to the company.
The combined capacity of the three power projects in Arunachal Pradesh is about 5,500 Mw.
In 2009, Jindal Power was allowed to pick up stake in HPDCAPL. It had provided initial equity for the stake, saying the HPDCAPL's memorandum of association was to be amended. With the cancellation of the HPDCAPL deal, the company would have to pull out of the government-controlled company. "The governance was to be changed, and we were supposed to have our directors. But that has been pending for a long time. So, we went to the government three months ago and asked it to either return us our money or make the amendment. Last month, it decided to cancel the deal," said a company official, on condition of anonymity.
An e-mail sent to Jindal Power did not elicit any response.
"Our stake in the hydro power corporation would not have given us any hold on other power projects," said the company official. He added HPDCAPL directors were represented on the boards of each of the special purpose vehicles for the power projects and this would continue.
Jindal Power plans to add massive capacity in the hydel segment. It is also implementing various coal-based power projects. Among these are a 2,400-Mw project in Tamnar in Chhattisgarh and two 1,320-Mw projects in Dumka and Godda in Jharkhand.