Covid-19 impact: JSW Energy calls off acquisition of GMR Kamalanga Energy

The company noted that India's power demand declined by 16.2 per cent year on year (y0y) in the June quarter, due to weak economic activity amidst Covid-19 related lockdowns and restrictions

Sajjan Jindal-promoted JSW Energy has called off its proposed deal to acquire GMR Kamalanga Energy, an operational coal-based power plant in Odisha, owing to the Covid-19-related uncertainty. 

“With the elapsing of long-stop date, both the parties have mutually agreed to terminate the transaction, given continued uncertainty due to the Covid-19 pandemic,” JSW Energy said in a statement. The termination, it added, was with no cost to either of the parties.  

In February, JSW Energy had said it would acquire the 1,050 Mw project for Rs 5,321 crore, only to put it on hold in May.  

In order to become carbon neutral, the company