Moneycontrol
Last Updated : Nov 03, 2016 09:08 AM IST | Source: Moneycontrol.com

Jindal India Thermal on lookout for buyers for its Odisha unit

A host of power companies have been shedding their assets lately to counter fuel supply concerns and mounting interest costs burden. An article in Mint today reports the BC Jindal group company - Jindal India Thermal Power (JITPL) - is also on the lookout for buyers to sell its 1,200 megawatt (MW) Odisha plant.

 
 
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Moneycontrol Bureau

A host of power companies have been shedding their assets lately to counter fuel supply concerns and mounting interest costs burden. An article in Mint today reports the BC Jindal group company - Jindal India Thermal Power (JITPL) - is also on the lookout for buyers to sell its 1,200 megawatt (MW) Odisha plant.


Singapore’s SembCorp and Indian companies Adani Power and JSW Energy are believed to be in the race to pick up these assets. While SembCorp is said to have offered to make an upfront cash payment of roughly Rs 1,600 crore for the equity component of the project, Adani and JSW have quoted a higher price albeit offering upfront cash of only Rs 500 and Rs 600, respectively.


The two Indian majors have put forth certain conditions with respect to signing of power purchase agreements and coal linkages before paying off the balance cash. This is similar to the conditions laid by JSW in its recent acquisition of Naveen Jindal-led Jindal Steel and Power’s 1,000 MW thermal unit.


Apart from debt repayment the sale is also part of JITPL’s effort to appease a section of the minority shareholders who have been wanting the promoters to divest from power and focus on the core poly films business.

The Angul-based project was completed at a cost of Rs 7,537 crore and has debt of Rs 5,900 crore and an equity of Rs 1,637 crore.

First Published on Nov 3, 2016 08:41 am
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