JP Power may sell stake in 2 hydro power projs: Sources
CNBC-TV18 learns from sources that the two power projects include its 300 MW Baspa and 1200 MW Karcham Wangtoo plants.
Struggling to cut down its debt, Jaiprakash Power Ventures is looking to sell stake in its two hydro power projects. CNBC-TV18 learns from sources that the two power projects include its 300 MW Baspa and 1200 MW Karcham Wangtoo plants.
The total cost for JP Power plants higher than Rs 10,000 crore. Sources say the power generator has approached players like CESC for the stake sale. However, they add, that CESC is reluctant to buy stake in JP Power’s projects.
CESC is unlikely to buy any stake and the company is currently in talks with foreign players for divestment of stake.
At 13:10 hrs Jaiprakash Power Ventures was quoting at Rs 13.75, up Rs 0.51, or 3.85 percent.
Jaypee Group, which owns JP Power, has a debt of nearly Rs 54,000 crore on its books, whish is one of the highest among Indian companies. The high debt is a result of rapid expansion in real estate, infrastructure, cement and power sectors over the past few years. JP Power has a consolidated debt of more than Rs 20,000 crore.
While, JP Power said it does not comment on market speculation, CESC did respond to CNBC-TV18's query.