JSW Energy to buy GMR Energy's Kamalanga power plant

GEL shall also procure balance stake in GKEL from IIF and IDFC First Bank, to enable JSW Energy Limited (JSWEL) acquire 100% stake in GKEL, for a total consideration of an amount up to Rs5,321cr (subject to working capital and other adjustments).

Feb 18, 2020 03:02 IST India Infoline News Service

JSW Energy
GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Limited (GIL), announced the signing of definitive agreements for the sale of its entire stake in GMR Kamalanga Energy Limited (GKEL). GEL shall also procure balance stake in GKEL from IIF and IDFC First Bank, to enable JSW Energy Limited (JSWEL) acquire 100% stake in GKEL, for a total consideration of an amount up to Rs5,321cr (subject to working capital and other adjustments).
 
GKEL is a 1050 MW (3* 350 MW) coal based power plant in Dhenkanal district of Odisha, with an option of adding another unit of 350 MW. This was one of the first few independent power plants commissioned in India under the Mega Power Policy. The plant being located close to the coal mines has one of the lowest landed cost of coal in the country.
 
GEL and JSWEL had entered exclusive discussions on GKEL in October 2019. Through this divestment, the entire debt of GKEL of Rs4141cr will be reduced. The transaction shall be subject to customary regulatory and other approvals for its completion.
 
Commenting on the development, Srinivas Bommidala, Chairman, Energy & International Airports, GMR Group, said: “As we rebalance our portfolio, divestment of GKEL will help reduce the indebtedness of our group and strengthen our balance sheet. It will also help release significant management bandwidth to focus our energies on new growth areas.”

Related Story