Reliance Power rose 2.09% and Jaiprakash Power Ventures gained 3.43% at 11:56 IST on BSE after Reliance Power signed memorandum of understanding to acquire entire hydro power portfolio of Jaiprakash Power Ventures.
Reliance Power (RPower) and Jaiprakash Power Ventures (JPVL) made the announcement on Sunday, 27 July 2014.
Meanwhile, the BSE Sensex was down 132.88 points, or 0.51%, to 25,993.87
Reliance Power rose 2.09% to Rs 92.75. The stock hit a high of Rs 93.60 and a low of Rs 91.50 so far during the day. On BSE, so far 7.39 lakh shares were traded in the counter.
JPVL gained 3.43% to Rs 19.60. The stock hit a high of Rs 20.60 and a low of Rs 19.55 so far during the day. On BSE, so far 27.76 lakh shares were traded in the counter.
RPower's 100% subsidiary Reliance CleanGen (RCL) on Sunday, 27 July 2014 signed an exclusive Memorandum of Understanding (MoU) with Jaiprakash Power Ventures (JPVL), a subsidiary of Jaiprakash Associates for the acquisition of entire hydro power portfolio of JPVL.
JPVL has an aggregate capacity of 1,800 megawatt (MW) of hydroelectric power portfolio, fully in operation and with an asset base of over Rs 10000 crore. The portfolio consists of 3 plants with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir. The portfolio has Baspa State II plant with capacity of 300 MW at Kinnaur District, Karcham Wangtoo plant with a capacity of 1,091 MW in Kinnaur District and 400 MW at Vishnuprayag plant located at Chamoli District in Uttarakhand, press release issued by RPower and JPVL said.
Jaiprakash Associates will utilize the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet, the combined press released said.
Upon completion of the proposed transaction, Reliance Power will become the largest provider of hydroelectric power in the private sector in India.
Reliance Power, part of the Reliance Group, is India's leading private sector power generation company. The company has the largest portfolio of power projects in the private sector in India, based on coal, gas, hydro and renewable energy, with an operating portfolio of 4,525 MW. The company also has the largest captive coal reserves in the private sector in India, estimated at 2 billion tonnes. Besides, the company is developing 3 coal mines in Indonesia with an estimated resource potential of nearly 2 billion tonnes, and is also developing Coal Bed Methane blocks.
Jaiprakash Power Ventures currently owns and operates 2,291 MW of power capacity, which includes 1,791 MW of hydro capacity and 500 MW of thermal capacity. With ongoing commissioning of its 1,320 MW Nigrie Thermal Power Plant in MP, and upon completion of the 1,980 MW Bara Thermal Power Plant in UP, it will have a generation base of 5,500 MW
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