Reliance CleanGen Ltd, a 100 per cent subsidiary of Reliance Power has signed an exclusive memorandum of understanding (MoU) with Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of Jaiprakash Associates Ltd. (JAL) to explore the possibility of acquiring 100 per cent stake of the entire hydroelectric power portfolio of JPVL.
“JPVL’s hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs.10,000 crore. The portfolio comprises three 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,” Reliance Power said in a statement.
JAL is planning to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt. The completion of the proposed transaction would make Reliance Power the largest provider of hydroelectric power in the private sector, the company said.
SBI Capital Markets is acting as advisors for the proposed transaction.
